"Foriegn Earned Income Credit NOT allowed for Pro Gamblers"

[DesertCat]

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SEP-IRA and Self-Employed 401(k) plans are available to most entity forms, including sole proprietors, and have the same contribution limits and deductibility.

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Well you can't fund it with gambling winnings, which is why I'm assuming you'll need the corporate entity, to convert gambling wins into income. Also, individuals are limited to 14k in contributions, to go up to the max of 42k, you have to have an "employer" contributions. Can a sole proprietor make "employer" contributions?

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Higher Contribution Limits
• Fidelity's Self-Employed 401(k) allows you to make tax-deductible 401(k) salary deferrals to the plan of up to $14,000 for 2005.
• If you are age 50 or older you can make an additional catch-up salary deferral contribution of $4,000 for 2005.
• The plan also lets business owners make tax-deductible profit sharing contributions of up to 25% of compensation4, up to the annual maximum of $42,000 for the 2005 plan year.
• Note that the total of salary deferrals and profit sharing contributions cannot exceed $42,000 for 2005 (or $46,000 if age 50 or older).

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