Self-Employed Plans. For self-employed people, Congress has created the SEP IRA. All self-employed individuals—from accountants to Avon ladies, barbers to real estate brokers, doctors to decorators—are permitted to establish such a plan, to which they can contribute as much as 25 percent of their income, up to $52,000 annually. If you moonlight from your regular job, you can establish a SEP IRA for the income you earn on the side. The money paid into a SEP IRA is deductible from taxable income, and the earnings are not taxed until they are withdrawn. The plan is self-directed, which means the
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