What is a Traditional IRA?.

Traditional IRAs allow you to contribute up to $5000 per year. If your income is less than the $5000 allowed contribution, you can contribute up to the amount of your income. These contributions in many cases can be deducted on your income tax return. The deductible amount depends upon your Adjusted Gross Income and your filing status (single, joint, etc.). So while you may be able to contribute, you may not be eligible to deduct some or all of your contribution. Individuals at all income levels are eligible to contribute, as there are no income limits. Check with a professional to discuss your specific situation.

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Contribution limits notice .

Contribution limits will increase $500 per year depending on inflation.The current limit for 2008 is $5000. If you do not make the full $5000 contribution within the allotted fiscal year, you are not eligible to make an additional deposit in the following fiscal year to make it up.