Individual Retirement Accounts (IRAs) were created to give wage earners a tax-deferred investment plan for retirement. Regardless of income or participation in other pension plans, taxes on Traditional IRA earnings are deferred until the money is withdrawn, usually during retirement when you will most likely be in a lower tax bracket. Many wage earners can also deduct some or all of their contributions to a Traditional IRA.

You may be eligible to make a tax-deductible contribution up to $4,000 per year to a Traditional IRA if you:

• Have earned income and are not covered by an employer retirement plan
  OR
• Are covered by an employer retirement plan and your income does not exceed $60,000 if you are single and $80,000 if you are married.

• Contribution limits - 100% of your Annual Gross Income or $4,000 in 2007, or $5,000 in 2008, whichever amount is less
• Additional IRA catch-up contributions of $1,000 per year in 2007 will be allowed for those age 50 or older
• Certain IRA funds can now be rolled over to qualified retirement plans, including 401(k), 403(b) Tax-Sheltered Accounts, and 457(b) Deferred Compensation Plans