There are different rules for "IRA". If you are a sole proprietor instead of a corporation, you can do a SEP IRA. That, depending on your earnings, will allow you to sock away up to $49k/yr. If you are incorporated, you must offer the same 401k plan to all employees (you and your team). Also, company 401k plans cost money to manage... more than you might think. When you are small it is more than you'd expect. I incorporated last year and this is my experience in So. CA.
There's also HSA (although still taxed in California you'll still avoid federal taxes) which is tax deferred and if used for qualified medical expenses you'll never pay federal tax. After age 60 it can be drawn down on similar to an IRA. (Has the caveat that it to maintain an HSA you need to be on a HDHP, which for a healthy 20 something is probably a reasonable choice).
HSAs are a great choice for someone without ongoing medical costs. I'm currently earning 2% in mine. Best part about it is that contributions stay in the account & continue earning interest, unlike an FSA where it's use-it or lose-it each year.
If you do any freelance work or own your own business you could do an Independent 401k which lets you stuff more money away than a normal 401k. Good idea for some of the freelancers on HN.
