Thank you @dmertz for such a detailed answer.
Couple of follow up points:
1. Thanks for mentioning that the SEP IRA contribution is a percentage of the net income. I was calculating it on the gross income. :-). Is this percentage 20% or 25%?
2. Your insight on both (my husband and my) IRA contributions to the traditional IRAs being deductible is extremely helpful.
With gratitude,
Anu
