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My parents are 53 and 57. They are both self-employed. Only recently have they begun to learn about foolish money management and retirement. They have no debt (other than their home mortgage) but unfortunately have VERY little retirement savings (my guess would be about $10,000-$15,000). I am trying to help them make the best decisions possible re: retirement investing on a going forward basis and could use your advice!

My father is now covered by a SEP-IRA that beginning in 2003 will receive approximately $3000-$4000 per year.

I believe that my father is not eligible to make deductible contributions to a traditional IRA because he is eligible for the SEP and my parents joint income is $70,000/yr. Is this correct?

My mother is not covered by any employer retirement plan and will make a traditional IRA contribution of $3000 in 2003 plus a $500 makeup (for a total of $3500).

So as things stand, I believe my parents are eligible to make a total reitrement contributions each year of $3500 (for my mom - adjusted up each year) and whatever goes into my Dad's SEP-IRA.

Obviously, they can save more on their own (in a non retirement specific/tax advantaged vehicble) but are there any other options for them that carry tax advantage?

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