This is a special type of IRA for people who run their own small businesses (the acronym SEP stands for “self-employed person”). If you’re a freelancer, a temporary worker, or a selfemployed professional of any kind, look into a SEP-IRA account. This account enables you to invest up to 15% of your annual earnings in a retirement account free of current taxes — a significant advantage over the ordinary IRA. Another similar type of account is called the Keogh plan. The plan enables self-employed people to set aside even more tax-free income — usually up to 20% of your annual earnings — but the process involves a significant amount of paperwork, which may not sound particularly appealing to you.
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