ezeiza:

Does it make any sense to start a SIMPLE or SEP IRA at this point in time given the likely increase in my future tax bracket?  Thanks so much for the advice.

With SEP-IRA you can invest 20% of your profit. If you had 10K profit in 2007, then you can invest $2K. This means you will pay less (defer) income tax. Multiply the contribution by your bracket to find out how much less your tax will be.

If it is a lot of income, look at the other options you have for self-employed retirement accounts.

I would call Fidelity, then Vanguard. Look at their web sites. See what the options are.