Tax 2004 Reminder: IRA Tax-Deduction Range Increased

We want to remind our readers that for 2004 taxes, the requirement for
the adjusted gross income (AGI) limit has increased.

Some taxpayers fund traditional IRAs with 'before tax' dollars because
either they do not meet Roth IRA guidelines (whose contribution is made
with after-tax dollar but grows without any tax burden for future) or they
simply love the tax deduction. However, this deduction is phased out at
certain income limits if the contributor is covered by a retirement plan at
work.

For 2004 taxes, single and head-of-household filers covered by a company
retirement plan and has AGI not exceeding $45,000 will get a full IRA
contribution deduction. For married couples filing jointly, this amount limit
is $65,000. A partial deduction is allowed if the AGI falls between $45,000
and $55,000 for single and head-of-household and between $65,000 and
$75,000 for married couples filing jointly.

Another Reminder:
You can contribute $3,000 ($3,500 if you're 50 or older) in your IRA (Roth
or Traditional) for the 2004 tax year. Deadline is same as your Tax filing
deadline - Apr 15th.
In 2005, you can contribute upto $4000 ($4500 if you're 50 or older) to
your IRA account if you qualify.