<p>If you are wealthy enough, you can set up a Defined Benefit Plan to shelter a lot of income like regular IRA. The ratio is about 1:2, in onter words, for every $1 you report to IRS as income, you can shelter $2 in to this plan. It is very expensive to create and it requires you to contribute every year. I am not sure if it applies to wage earners. You can also rollover the assets in the plan to a regular IRA when you terminates the plan, again it costs a lot of money to terminate as well. </p>
<p>You need a lawyer and an actuary to work for you and each year you have to pay almost $2000 minimum to administrator of the plan. For 70K, it is NOT worth the efforts to play with that route, as the costs exceeded the benefits. It is most suited for ppl who have business income over $500K or more.</p>