Posted by John Merchant on July 08, 2005 at 20:09:57:
Yes, and perhaps SEP, SIMPLE and Roth IRA as well. If one has high income, and sets up and uses several entities, substantial income can be sheltered in these plans.
A client of mine, a health care professional, who’s now in his '80s, is still contributing more into his SEPIRA than he’s having to withdraw ever year. He works a couple of days a week so he still has earned income to shelter.
Get IRS Pub 590, or find and print it online and read it. Very interesting and lots of good info about how to set up and use IRA accounts. It’s about 135 pp. so ou might prefer to call and order one from Gov. printing office or IRS office.