Self-employed workers wishing to save hefty amounts for retirement may wish to consider a Simplified Employee Pension Plan, or SEP IRA.

Designed for sole proprietors and small businesses, the SEP IRA boasts funding limits that are more generous than the traditional or Roth IRA. Plus, they’re flexible.

Contribution limits for the SEP IRA max out at 25 percent of compensation, not exceeding $49,000. Earnings grow tax-deferred, meaning the IRS doesn’t get paid until assets are withdrawn.

So if you stash the maximum $49,000 and earn 8 percent annually, you’d have nearly $710,000 saved up in 10 years. That kind of earning potential makes the SEP IRA a smart choice, says Certified Financial Planner Dee Lee, author of “Let’s Talk Money.”

Even Lee stashes her own retirement savings in a SEP IRA.