SEP IRA
Also called: SEP, simplified employee pension
A SEP IRA lets a self-employed person or small employer contribute a percentage of compensation — up to 25%, capped in dollars — with almost no administration. It's the simplest way for a freelancer to shelter a large sum. The catch for anyone with staff is that contributions must be the same percentage for every eligible employee, which is why a solo 401(k) is usually better for a one-person business.