Which kind of investment account for a 1099 contractor?

Ross Ikle

I work for myself as a 1099 contractor with a large insurance brokerage house.  They offer a privately held company stock that they will match contributions on.  I've tried setting up both my contribution account and the unvested matching account in Quicken as a 401K type account.  I'm just wondering if I chose the correct investment account "type" to effectively track this kind of investment.  Thanks.  Quicken Home/Business Premier for Windows 10 2018.

Tom Young

Unknown

I've been in the situation you describe before.  However this time, I'm not an employee of any kind...I'm an independent contractor.  I don't get a W-2.  I'm also responsible completely for my own taxes.  I'm not sure which kind of accounts I should setup in Quicken to track my contributions to the Company's stock purchase plan (ISOP), as well as the company's matching contributions.

mshiggins

Ross Ikle said:

I've been in the situation you describe before.  However this time, I'm not an employee of any kind...I'm an independent contractor.  I don't get a W-2.  I'm also responsible completely for my own taxes.  I'm not sure which kind of accounts I should setup in Quicken to track my contributions to the Company's stock purchase plan (ISOP), as well as the company's matching contributions.

I would choose the type of account that most closely captures the tax treatment and/or that enabled transaction downloading.


Is your company stock account tax deferred or taxable?

Tom Young

Ross Ikle said:

I've been in the situation you describe before.  However this time, I'm not an employee of any kind...I'm an independent contractor.  I don't get a W-2.  I'm also responsible completely for my own taxes.  I'm not sure which kind of accounts I should setup in Quicken to track my contributions to the Company's stock purchase plan (ISOP), as well as the company's matching contributions.

I think you need to understand the tax implications here to make your best choice as to what type of Account will serve you best.

Can you deduct your contributions?
Does the customer match count as current income, or not?
Does the customer match have a vesting period?

Unknown

Ross Ikle said:

I've been in the situation you describe before.  However this time, I'm not an employee of any kind...I'm an independent contractor.  I don't get a W-2.  I'm also responsible completely for my own taxes.  I'm not sure which kind of accounts I should setup in Quicken to track my contributions to the Company's stock purchase plan (ISOP), as well as the company's matching contributions.

Thanks.  I'll have to check into the tax handling with the ISOP administrator.

Tom Young