How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask ShawnA Your Own Question
ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
15641319
Type Your Tax Question Here...
ShawnA is online now
A new question is answered every 9 seconds

Are payments out of a 409(a) plan subject to selfemployment

Customer Question

Are payments out of a 409(a) plan subject to selfemployment tax?Amount was taken out of director fees to contribute to this plan.
Submitted: 1 year ago.
Category: Tax
Expert:  ShawnA replied 1 year ago.

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA

If you mean when funds are taken out of the plan are they taxes as normal income (subject to FICA. etc) then the answer is yes.

Expert:  ShawnA replied 1 year ago.
The compensation is taxed in the same manner as it would be taxed if it were not covered by Section 409A.
Customer: replied 1 year ago.

If the money was contributed out of personal money and put into a trust does change the answer?

Expert:  ShawnA replied 1 year ago.
No. It is still taxed as if you earned it.