Introduction This chapter discusses retirement plans that you can set up andmaintain for yourself and your employees. Retirement plans are savingsplans that offer you tax advantages to set aside money for your ownand your employees' retirement. In general, a sole proprietor or a partner is treated as anemployee for participating in a retirement plan. SEP, SIMPLE, and qualified plans offer you and your employees a taxfavored way to save for retirement. You can deduct contributions youmake to the plan for your employees. If you are a sole proprietor, youcan deduct contributions you make to the plan for yourself. You canalso deduct trustees' fees if contributions to the plan do not coverthem. Earnings on the contributions are generally tax free until youor your employees receive distributions from the plan in later years. Under some plans, employees can have you contribute limited amountsof their before-tax pay to a plan. These amounts (and the earnings onthem) are generally tax free until your employees receivedistributions from the plan in later years. In general, individuals who are employed can also set up andcontribute to individual retirement arrangements (IRAs).