Traditional IRA vs SEP IRA

[jamazon]

Since I am self-employed, wouldn't it make more sense for me to open a SEP IRA instead of the traditional IRA where my yearly contribution is limited at 4k?

Another question I have is the need for a traditional IRA if I want to open a SEP IRA. I keep reading at the SEP IRA website but do not understand if I need to create a traditional IRA or not.

Thanks.

[greg nice]

if you are truly self employed, then you are paying an extra approximate 15% self employment tax on top your regular income tax bracket. an SEP IRA is crucial to offset some of that tax burden.

[jamazon]

That still doesn't answer the question on whether I need both the traditional IRA and the SEP IRA accounts.

[greg nice]

sep ira account is stand alone

[iott]

Yes, you want both -- A SEP and a ROTH.

Remember, though, if you have any employees you must offer them the same SEP....

Iott