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I am in the process of getting my parents started in their retirement investing. They have absolutely NOTHING invested! My plan was to simply open accounts for them the same way that I have my own set up (ROTH IRA and Non-rertirement brokerage account), until I began learning about SEP & SIMPLE IRAs. Both of my parents are self employed.

However, even if they ARE able to contribute more than 2,000 through one of these plans (vs. ROTH), I do not think that they will financially be able to. I have sought IRS literature, and still am foggy on what plan will be most beneficial to them. With a SEP or SIMPLE plan, are the only tax advantages current deductions? If so, and if they will only put roughly 2,000 in per year anyways, wouldn't the ROTH be the better choice, sparing all of the captial gains taxes?

Your responses, or pointing me in any particular direction for resources to educate myself, are appreciated!

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