While the deadline is April 16, 2007, it’s not too soon to start setting aside money for your 2006 IRA contributions. As I wrote in a previous post, IRAs are one way to use “other people’s money” to save.
For 2006, the maximum IRA contribution is $4000 per person with a $1000 catch-up contribution for people 50 or older.
Regular IRA contributions are 100% deductible for incomes up to $50,000 (single) and $75,000 (married filing jointly). People with incomes over $60,000(single) and $85,000 (married filing jointly) cannot deduct regular IRA contributions. Roth IRA contributions are not deductible and the maximum contribution can be made for incomes up to $95,000 (single) and $150,000 (married filing jointly). People with incomes over $110,000 (single) and $160,000 (married filing jointly) cannot make Roth IRA contributions.This is not financial advice. Please consult a professional advisor.
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