The retirement account I am going to tell you about is really neat if you work for a small company or own a family business that is home based or "brick and mortar." A company-sponsored IRA can even be opened by the smallest of businesses known the "sole proprietor". Under the SEP-IRA plan, an employer (your boss or any business entity you or your family owns that is recognized be the IRS) can contribute to an employee's existing IRA.

The penalties for early withdrawal remain the same as with the traditional IRA. Contributions are deductible. If you are a small business owner, IRS Publication 590, Individual Retirement Arrangements, explains the contribution limits for these plans and your accountant can advise you. You can set one up with an online stock brokerage to invest in the stock market to legally avoid taxes on some of the profits of your business. Self-employed taxpayers have a different standard for contribution limits than employees of a firm that offer a SEP-IRA plan.

SEP-IRAs are flexible for employers. An employer does not have to contribute every year. The contributions are tax-deductible. Once you have the account open you buy and sell stocks using the techniques such as those that I teach!