You need to do a worksheet to find out just how much. If you have an education IRA for your child, you cannot then qualify for your child to obtain a Hope Scholarship or Lifetime Learning credit. But, if your income is too high to qualify for these programs, an education IRA might be a good choice for you. If you think you won't qualify for the Hope Scholarship or Lifetime Learning credit programs but then you do, the beneficiary of the education IRA must withdraw the funds by age 30 and pay taxes and penalties on it. However, the education IRA can be transferred to a sibling or the beneficiary's child.
Contributions are deductible.
You must contribute the same amount to your employee's SEP-IRA as you contribute to your own. SEP-IRA's are flexible for employers. An employer does not have to contribute every year. The contributions are tax-deductible. Early withdrawal penalties are steep.