<prompt> Human: I know my basic options are I401k, SEP-IRA, and Simple IRA, through the vanguard website, but let me know if I have something wrong here, use the following example: 1099 income NO W9: 85,000 Business Expense: 25,000 Net: 60,000 Sole proprietor taxed as a pass through. Am I correct in saying that I can contribute, lets say 5,000, into a SEP IRA account and write that off? Essentially taking money that I would be paying the government in income tax and putting into my pocket at a later date? If I only plan on contributing about 5,000year into a retirement account is SEP-IRA the way to go?  <response>: If youre only doing 5Kyear, dont have another job at any time during the year where you have a work retirement plan, and arent limited by your income because your spouse is covered: Id just go with a normal IRA, not any of the SE options. Will be simpler and perhaps cheaper, and with a 5,500year limit would suffice. You could choose either pre-tax traditional; your only option with a SEP or post-tax Roth. 