The Roth IRA offers federally tax-free growth, which means you pay no taxes at all on earnings if you withdraw after age 59 and have had the account for more than five years. 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. This article is reprinted.