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I am 24, self employed w/ no employees and would like to open up a Roth IRA. Is this allowed or am I restricted to the SEP/SIMPLE plan?

Congratulations for being self-employed--and for thinking about your retirement.

There are several choices available to you. Yes, you can open up a Roth IRA account. It is, of course, subject to certain limits. You can find out more in IRS publications 590 and 560.

Is self-employed income considered earned income under IRS guidelines?

Yes, it is considered earned income for IRA purposes. The amount to use is the net earnings from self-employment less the deduction for contributions made on your behalf to retirement plans and less the deduction allowed for one-half of your self-employment taxes.

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