If you have earned income and you are under 70½ years old before the close of your current taxable year, you can make a Traditional IRA contribution, up to the lesser of $4,000 for 2007 or $5,000 for 2008 or 100% of your earned income.

Your contributions may be tax deductible. You are eligible to contribute and deduct up to the annual limits each year if:

• You are not married and not an active participant in an employer-sponsored retirement plan; or
• You are an active participant in an employer-sponsored plan, and your Modified Adjusted Gross Income (MAGI) is $52,000 in 2007 ($53,000 in 2008) or less if you are a single tax filer or $83,000 in 2007 ($85,000 in 2008) or less in 2006 if you file jointly with your spouse.

If you would like to view a comparison of the Traditional IRA vs. the Roth IRA, click here.

Depending on your tax filing status and modified adjusted gross income (MAGI), you may be able to make a Roth IRA contribution, up to the lesser of $4,000 for 2007 or $5,000 for 2008 or 100% of your earned income.

You are eligible to contribute up to the annual limits each year:

• If you are a single tax filer and your MAGI is $99,000 in 2007 or $101,000 or less in 2008. If your MAGI is between $99,000 and $114,000 in 2007 (between $101,000 and $116,000 in 2008), you may be eligible for a partial contribution. If it is $114,000 or over in 2007 ($116,000 or over in 2008), no contribution can be made.
• If you file jointly with your spouse and your joint MAGI is $156,000 or less in 2007 ($159,000 in 2008). If your MAGI is between $156,000 and $166,000 in 2007 or between %159,000 and $169,000 in 2008, you may be eligible for a partial contribution. If it is over $166,000 in 2007 or $169,000 in 2008, no contribution can be made.

If you would like to view a comparison of the Traditional IRA vs. the Roth IRA, click here.