|IRA Eligibility Flowchart: 2004|
Choose from the following selections if your federal income
tax filing status is:
What you need to know before
- Married couples should evaluate their options
independently. Use this flow chart twice--once for you
and once for your spouse.
- You can't contribute to a traditional IRA
once you've reached age 70½ (there is no age cutoff
for Roth IRAs).
- The total amount that you as an individual can
contribute to either a traditional or Roth IRA is limited
to the lesser of $3,000 (2002-2004) or 100 percent of
your earned income for the year.*
- There is often no reason to make nondeductible
traditional IRA contributions when you qualify to fund a
Roth IRA. However, the choice between funding a Roth IRA
or making deductible contributions to a traditional IRA
depends on your particular circumstances.
- Spousal IRA: If you are married and file a joint
return, and either you or your spouse has less than
$3,000 (2002-2004) in earned income, special rules apply.
- The choices available to you depend in large part on your
modified adjusted gross income for the year.