Traditional IRA

Features of the Traditional IRA:

In 2007, the maximum limit that an individual can contribute to a traditional IRA on an annual basis is $4,000. Also, individuals age 50 and older may make an additional $1,000 annual catch up contribution.

Who can contribute to a Traditional IRA?

Anyone with earned income who is younger than 70-1/2 can contribute to a Traditional IRA.

Who is eligible for deductions?

  • If you and your spouse are not covered by an employer sponsored retirement plan, you will receive a full deduction regardless of your income.
  • Your deduction will be reduced if your modified adjusted gross income is between:

    $83,000 and $103,000 for a married couple
    $52,000 and $62,000 for a single filer

For your specific situation, please consult your tax advisor.