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 $5,000 for 2008 or 2009 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 $53,000 in 2008 ($55,000 in 2009) or less if you are a single tax filer or $85,000 in 2008 ($89,000 in 2009) 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 $5,000 for 2008 or 2009 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 $101,000 in 2008 or $105,000 or less in 2009. If your MAGI is between $101,000 and $116,000 in 2008 (between $105,000 and $120,000 in 2009), you may be eligible for a partial contribution. If it is $116,000 or over in 2008 ($120,000 or over in 2009), no contribution can be made.
• If you file jointly with your spouse and your joint MAGI is $159,000 or less in 2008 ($166,000 in 2009). If your MAGI is between $159,000 and $169,000 in 2008 or between $166,000 and $176,000 in 2009, you may be eligible for a partial contribution. If it is over $169,000 in 2008 or $176,000 in 2009, no contribution can be made.

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