A tax-deferred annuity is an investment product issued by an insurance company. Under current tax law, you do not pay taxes on the earnings credited until the earnings are withdrawn. An annuity can accumulate interest in three different ways: on the principal, on your earnings and on the earnings you would have otherwise paid in taxes. Tax-deferred annuities are available in both fixed and variable form. Tax-deferred compounding allows your money to potentially accumulate faster than similar taxable alternatives.
Simplified Employee Pension (SEP) Individual Retirement Account (IRA)
With a SEP-IRA, the employer, not the employee, makes the contributions. Generally, the SEP-IRA is designed for self-employed persons operating as sole proprietorships, partnerships or corporations.