Tax Filing & 2004 IRA Contribution: Friday Is The Deadline

We want to remind our readers again: The deadline for making your 2004
IRA contribution is same as your deadline for tax filing - April 15th. You
can contribute $3,000 ($3,500 if you're 50 or older) in your IRA (Roth or
Traditional) for the 2004 tax year.

We also 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.

By the way, in 2005, you can contribute upto $4000 ($4500 if you're 50 or
older) to your IRA account if you qualify.