Ben-

As an employee, you would be eligible to contribute up to $4,000 to a Traditional IRA. If you are married, you could contribute an additional $4,000 for your wife. FYI, you can still make a contribution for 2005 (until April 15th) if you want.

Depending upon your incomes and if you (or your wife) were/are covered by a pension plan, you may or may not be eligible to take an income tax-deduction.

I would need more specifics to best advise you. Additionally, if you did any moonlighting and were paid on a 1099, you could also consider contributing to a SEP.

Hope this helps.

Larry

Zip Code: Lkeller@physicianfinancialservices.com

Larry,

I do not have other pension plan. My wife worked about 6 months in 2005. She participated in a 401k plan while she was working. Our joint AGI is about 200K minus some deduction of mortgage interests, school tax, etc.. Will I subject to a phase-out for the IRA deduction because my spouse was an active participant for part of a plan year and our AGI is high? Thanks again.

Ben

Zip Code: liu-7@medctr.osu.edu

If your spouse was a participant in a retirement plan during the year, and your combined AGI exceeds $160k, then you won't be able to make a deductible contribution to an IRA this year. Don't forget, AGI is your income BEFORE itemized deductions.

You can still make a non-deductible IRA contribution of up to $4k this year. Even though you don't get a current tax break, the income does grow tax-deferred. If you have the extra money, it's a great place to invest $4k.

Hopefully this year you'll have access to a 401k plan or some other retirement plan at your job.

Zip Code: aschwartz@mdtaxes.com