What is a W2?

Definition: A “W2” refers an IRS tax form, but in the wealth management industry it typically refers to an advisor who has affiliated with a firm as an employee (W2) of the firm, vs a “1099” independent contractor basis.

When used in an RIA context: “The financial advisor decided to join an RIA where they would affiliate as a W2 employee advisor of the firm.”

See also: 1099