There is another benefit of a sep ira -- Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA), it is protected from bankruptcy. There are a thousand things that can go wrong in life -- and while you seem immortal now, bad stuff can and does happen. You can withdraw money early out of an ira by paying a 10% penalty and taxes. If you have an ira and bad stuff happens, you should NOT withdraw money from it. Instead, it's better simply to spend everything else first, then rack up on debt and go bankrupt, knowing that you have a sizable nest egg waiting for you on the other side.