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As mentioned before, I am not a tax attorney or tax accountant.  I am giving general, educational information.  They are licensed and qualified to give specific recommendations for your specific circumstances.

Another retirement plan that is available to small business owners is the Keogh Plan.  The key benefit of a Keogh is that you can make very large contributions to the plan, up to $170,000 in 2005.  A Keogh can be set up without consulting with the IRS, although experts recommend that you get a determination letter from them anyway.

The Keogh can be set up as either a defined benefit plan (a traditional pension where you get a set amount each month) or a defined contribution plan where a set amount is contributed but what you get out depends on the performance of the assets you invest in.

If you choose the defined benefit plan you can contribute the $170,000 for qualifying employees (usually the owner.)  The downside is that you have to make the contributions even in years when your profits go down or even if you have a loss.

If you choose the defined contribution plan, contributions are similar to what you can contribute to a SEP or a Uni-k.