Get your question answered

Can I particpate in both an Traditional and Roth IRA?
Are contributions to my Roth IRA deductible?
Can I change from a Traditional to a Roth IRA? vice-versa?
Is there a deadline for making contributions?
Do I have to contribute the maximum amount to my IRA?
Do I have to make my entire annual contribution to an IRA at one time?
Is there a definitive source for IRA information.
What are the income limits for contributing to a Traditional IRA?

Are contributions to my Roth IRA deductible?
No. Roth contributions are not deductible. The benefits of a Roth are that your investments grow tax free, and you do not pay taxes when you start to receive distributions.

Can I change from a Traditional to a Roth IRA? vice-versa?
Yes. Many people change from a Traditional to a Roth. Many people change a Roth to a Traditional IRA when the have met the income limits. Look for more about this subject in a future newsletter topic

Is there a deadline for making contributions?
Yes. The deadline is April 15th of the following year. So for the year 2004, you have until April 15th, 2005 to make your contributions. As we will see in a future newsletter topic making your contributions early can reap bigger benefits.

Do I have to contribute the maximum amount to my IRA?
No. You can contribute as little as you would like. Just do not go over the maximum contribution amount of $3000 for the 2004 year.

Do I have to make my entire annual contribution to an IRA at one time?
No. You can contribute as often or infrequent as you would like. As long as you contribute by the April 15th deadline of the next year. Check with your IRA or potential IRA ?

Is there a definitive source for IRA information.
Yes. The IRS. This document IRS, Taxes, Pub. 590. Individual Retirement Arrangements (IRAs) has all the information about the ins and outs about IRAs.

What are the income limits for contributing to a Traditional IRA?
Well that depneds on whether you are single or not.

Single If you are single and not covered by a employee sponsored retirement plan, then the full maximum allowed amount ($3000 for 2004) is tax-deductible.
If you are single and covered by a employee sponsored retirement plan, if your adjusted gross income (AGI)is between $45,000 and $55,000 your contributions are partially deductible. [See Chart]

Filing Jointly If one of you is covered by your employee sponsored retirement plan, then see the chart below for your deduction amount.
If you both are covered then you can claim partial deductions if your AGI is between $65,000 and $75,000 [See Chart].

2004 Information
Single AGI	Joint AGI	Maximum deductible contribution
$3,000-$45,000	$3,000-$65,000	$3,000
$46,000	$66,000	$2700
$47,000	$67,000	$2400
$48,000	$68,000	$2100
$49,000	$69,000	$1800
$50,000	$70,000	$1500
$51,000	$61,000	$1200
$52,000	$72,000	$900
$53,000	$73,000	$600
$54,000	$74,000	$300
$55,000 and up	$75,000	$0