Until April 15, 2005, you can contribute to an IRA for 2004. As long as you earned at least $3,000 last year (and did not reach age 70 1/2), you can contribute up to $3,000. Those who were at least age 50 can contribute another $500. Married couples with one income can have two IRAs, up to the above limits for each spouse.
You probably can contribute to a 2004 IRA but can you deduct that contribution? Yes, unless:
You are covered by an employer’s retirement plan and
Your income is above certain levels.
To deduct your full contribution, as described above, your income must not exceed $45,000 (single filers) or $65,000 (joint returns). Those with slightly higher incomes can get partial deductions.
If your spouse does not participate in an employer’s retirement plan, she can get a full deduction if joint adjusted gross income (AGI) is $150,000 or less. Smaller deductions are permitted up to $160,000 in AGI.
