This post is for all the self-employed artists out there who might find this financial goodie helpful in saving money. Mr. Papermaker and I met with our various money people and found out about this thing called an SEP IRA. It is for self-employed people who want to contribute to their retirement. I learned that I can put up to 25% of my net profits into a special IRA, which will benefit me in multiple ways: I save for retirement since I don't have an employer doing it for me; I avoid paying 15% of my profits to the government, which employers usually pay, and I have less taxable income. Win-win!
I am not a financial advisor so don't take my word for it — go talk to the professionals you use — but I am really excited about this option for me. The great thing is that it is really flexible so I don't have to make a contribution until I do my taxes and figure out my net profit and how much I want to put in, and it can change every year. Psyched!