Contributions are also tax-deductible in most cases. Unlike a traditional IRA, you do have to pay taxes on the money you contribute. Remember though, you don't have to pay taxes on the money you earn on your investments once you've retired. This is considered a particularly good option for younger workers. Simplified Employee Pension IRAs are designed for sole proprietors and those with any self-employment income.
Employers contribute, and employees can elect to contribute if they wish.
Keogh A Keogh is not an IRA, but it is designed for small business owners and the self-employed. You can deduct what you contribute to your Keogh from your taxable income.