tax tips for tax year 2008
Individual Retirement Accounts (IRAS)
Traditional IRA and Roth IRA Contributions. If you are below the age of 50 in 2008, you may contribute as much as $5,000 or your taxable compensation for the year to your traditional or Roth IRA for 2008. If you are age 50 or older before 2009, the most that can be contributed to your traditional IRA for 2008 is the smaller of: $6,000 or your taxable compensation for the year.
However, if your modified Adjusted Gross Income (AGI) is above a certain amount based on your filing status, your deduction for contributions made to a traditional IRA and/or your ability to contribute to a Roth IRA may be reduced or eliminated. Please see Publication 590 for further information.
Traditional IRA Income Limits. You may be able to take an IRA deduction if you were covered by a retirement plan and you modified adjusted gross income is less than $63,000 ($105,000, if you are married filing a jointly or a qualifying widow(er).
Roth IRA Income Limit. You may be able to make a Roth IRA contribution if your modified adjusted gross income is less than $116,000 ( $169,000 if you are married filing jointly or a qualifying widow(er). See Publication 54 or 590 for limitation if your tax return contains Form 2555 or 2555-EZ.
Special Rules for Americans with Foreign Earned Income. If your tax return contains Form 2555 or 2555-EZ, see Publication 590 for special information regarding what income constitutes taxable compensation for purposes of contributing to an IRA.