Sharing Knowledge in Smallcaps

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IRA Insights
In 2006, total contributions to a traditional IRA or a Roth IRA
(or both combined) can be as much as $4,000, or $5,000 if
you're 50 or older.

* Traditional IRAs are available to all workers and their
spouses. If you make non-deductible contributions, you'll have
to keep good records to determine the portion of withdrawals that
will be taxable. What's more, a spouse who's not covered by an
employer plan can make a fully-deductible contribution, with or
without earned income, if the couple's adjusted gross income (AGI)
is no more than $150,000.

* Roth IRAs contributions, up to $4,000 or $5,000 this year, are
fully available to those with AGI up to $95,000, or $150,000 on a
joint return. (With slightly higher AGIs, partial contributions
are available.)

Roth IRA contributions are never deductible. However, all withdrawals
are tax-free after five years and after age 59-1/2. In general, the
more years you have until retirement and the lower your current tax
bracket, the greater the advantage of a Roth IRA. You'll have more
years for the account to accumulate investment income that never
will be taxed.