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Greetings, Rescuedvr, and welcome. You wrote:

<<I am self-employed, I contribute $2000 /year to my traditional IRA @ Fidelity.
I am going to move all the monies from the Fidelity IRA to the Vanguard 500 index fund (as my IRA), even though the Fidelity IRA has been performing well, it's a managed fund with a high cost.

My questions is, since I need the $2000 deduction for tax purposes, should I consider a SEP-IRA , or a ROTH-IRA or a combination, or should I just set up the Vanguard as a Traditional IRA? >>

You may have and contribute to a SEP-IRA at the same time you contribute to a traditional or a Roth IRA. Depending on your net self-employed earnings, the SEP-IRA may give you a larger deductible contribution. If you use the SEP, then depending on your AGI and filing status, that may make any contribution to a traditional IRA nondeductible. If so, then you may still use a nondeductible traditional or a Roth IRA. Of the two, the Roth is preferable because all earnings may ultimately be taken tax-free. For details, see our IRA area at

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