IRA Q&A

Here's some IRA information that could provide you with a rare benefit - a tax cut!

Q. Why should I consider contributing the maximum amount to my IRA?
A. You can contribute any amount up to the maximum limit. But the highest allowable contribution could make a big difference in your retirement funding.

For example: If you contribute $3,000 instead of $2,000 each year from 2007 through 2014, and your IRA earns a 5% return, you'd have an additional $10,000 more in eight years.*

* Contribution limit will revert back to $2,000 after 2011 unless Congress acts to extend it.

Q. Do I have to make a lump-sum IRA contribution each year?
A. You can, but it might be a better idea to make your IRA contributions through payroll deduction or an automatic transfer at the credit union. That lets you spread out your payments over the year and can help with your budgeting.

Q. Is it too late to contribute to my IRA for last year?
A. No. If like most people, you are a calendar year taxpayer, you can make a regular contribution for last year to your traditional or Roth IRA any time before April 16th of this year. And you can make a contribution for this year any time between now and April 15 of next year.

Traditional IRA Deductibility Limits Increased for 2007
The IRS has released the income phase-out ranges for deducting 2007 traditional
IRA contributions. As of November 2006 they are:

DEDUCTIBILITY PHASE-OUT RANGES FOR TRADITIONAL IRA CONTRIBUTIONS
		Married Couple
		Owner IS an Active Participant		Owner NOT an Active Participant Spouse is Active Participant
Tax Year	Single or Head of Household Who IS an Active Participant	Joint Return	Individual Returns
	Individual MAGI	Joint MAGI	Individual MAGI	Individual or Joint MAGI
2006	$50,000 - $60,000	$75,000 -$85,000	0 - $10,000	$150,000-$160,000
2007	$52,000 - $62,000	$83,000 -$93,000	0 - $10,000	$156,000-$166,000