The perks of running for high office, and your own business

There are plenty of drawbacks to running for president, but there is at least one perk, of sorts: free tax advice. Candidates have taken to releasing there tax returns in recent elections. This gives them access to the collective wisdom of an Internet full of armchair tax advisers.

When Barack Obama released his 2000-2006 tax returns, the blog world noticed that Mr. and Mrs. Obama had not opened a Simplified Employee Pension (SEP) plan. The SEP, a glorified IRA, enables self-employed taxpayers to deduct up to 25% of their self-employment income when they contribute it to a SEP-IRA account. Sen. Obama's income came from his writing; his wife had consulting income.

You can set up and fund a SEP as late as the due date of your return. The only documentation required is a Form 5305-SEP for your records and a deposit to your SEP account with your friendly banker or broker by April 15 - or October 15 - if you extend your 1040. You may be able to contribute as much as $46,000 to a SEP for 2008.

SEPs aren't just for politicians. They are available to any business. Because they generally require proportionate contributions for all employees, they are most popular with self-employed taxpayers. While they aren't as flexible as other qualified plans, they are the easiest to run, and they are the only kind that can be set up after year-end.

Senator Obama's free advice didn't go unheeded. The Obamas' 2007 return featured $45,000 in SEP contributions -- saving $15,000 for taking money from one pocket and putting it in another.