No annual government reports are required, and ongoing administrative expenses are nil. The bottom line is SEPs are just as easy as deductible IRAs, but they allow much bigger contributions. Keogh Plans Keogh plans are the self-employed equivalent of corporate retirement programs. To get a deduction for the current tax year, the plan must be established before year's end. Once that's done, actual contributions can be deferred until the extended due date for that year's return.
Lower percentages are okay, too.
But in the true American tradition of greed you still want more, more, more retirement tax breaks. Take a good look at the new Roth IRAs, which became available in 1998. Fortunately, the phaseouts are high enough to leave most people untouched. Thank you, Congress. While the deductible IRA is a poor stepchild to other self-employed retirement plan choices, you should know one thing.