Setting Up A SEP-IRAYou can set aside retirement money even though you're the boss.
BySusan Caskey•
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Cooking for an easy way to cut your business taxes? Open atax-deferred retirement account created just for small-businessowners. One plan, the Self-Employed Pension-Independent RetirementAccount, also known as the SEP-IRA, is designed to be easy to openand maintain, while taking advantage of tax-free investing.
The SEP-IRA account is available to anyone earning income fromself-employment. You can open a SEP-IRA whether you are runningyour business part time or full time, and whether your company isstructured as an S corporation, a partnership or a soleproprietorship. Of the three major plans--the Keogh, SEP-IRA and,for the 1997 tax year, the Savings Incentive Match Plan forEmployers (SIMPLE), only the SEP-IRA permits contributions even ifyou're covered by another plan, such as a 401(k), at anotherjob. A SEP-IRA is as easy to open as a standard IRA account andoffers the most flexible funding options.
