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Yes, SEP-IRAs can be converted to a traditional IRA with no tax consequences. You could add traditional IRA contributions to that. Whether or not you should contribute new money to a traditional IRA (assuming you can deduct the contribution) or a Roth depends on your current income tax bracket and your projected income tax bracket when you retire.

You could, if you wanted, also convert it to a Roth IRA at this point. If you're in a low tax bracket (i.e. 15% or less) now but you think it may be higher in the future, this would be a good time to perform a Roth conversion as well if you can afford the tax (less than $150 in that case plus state taxes, and possibly considerably less).

As far as your freelance work, I believe this is also a form of self-employment income (may depend on the work, and I'm not a tax pro.) If it's self-employment income, it's subject to a punitive 15.3% self-employment tax. You could also open something like a self-directed individual 401(k) plan for the self-employment income and shelter it from income taxes (but not self-employment taxes).

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