Susan E. Thomas CPA
IRA Eligibility Flowchart: 2005

Choose from the following selections if your federal income tax filing status is:

What you need to know before beginning:
  • Married couples should evaluate their options independently. Use this flow chart twice--once for you and once for your spouse.
  • You can't contribute to a traditional IRA once you've reached age 70½ (there is no age cutoff for Roth IRAs).
  • The total amount that you as an individual can contribute to either a traditional or Roth IRA is limited to the lesser of $4,000 (2005) or 100 percent of your earned income for the year.*
  • There is often no reason to make nondeductible traditional IRA contributions when you qualify to fund a Roth IRA. However, the choice between funding a Roth IRA or making deductible contributions to a traditional IRA depends on your particular circumstances.
  • Spousal IRA: If you are married and file a joint return, and either you or your spouse has less than $4,000 (2005) in earned income, special rules apply.
  • The choices available to you depend in large part on your modified adjusted gross income for the year.

*If you are age 50 or older, you can make an additional "catch-up" contribution to an IRA (Roth or traditional). The annual catch-up contribution amount is $500 for 2005 and $1,000 for 2006 and later years.

Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011