Almost every individual with earned income can contribute to either a regular IRA or Roth IRA. Here is a simple chart to help you decide which one is right for you.

Feature	Regular IRA	Roth IRA
Age restrictions	Under 70 ½	No age restrictions
Income eligibility restrictions	Must have earned income equal to or greater than contribution. No restriction on maximum income.	Must have earned income equal to or greater than contribution. Full contributions can be made if Adjusted Gross Income is less than $150,000 for joint filers or $95,000 for individual filers. No contributions are allowed if AGI is above $160,000 or $110,000 respectively.
Taxation of earnings in IRA	Tax deferred	Tax deferred
Distribution requirements	Must start at age 70 ½	No distribution requirements
Taxation of distributions	Taxed as ordinary income	Not taxed
Contribution limits	$4000 TY2007 $5000 TY20008	$4000 TY2007 $5000 TY20008
Catch-up contribution for those age 50 and above	$1000	$1000
Deductibility of contributions	Deductible if not covered by employer plan or if income is below certain levels.	Not deductible
Penalty for withdrawal before age 59 ½	10% penalty on earnings + tax on earnings	10% penalty on earnings + tax on earnings

The savings, tax deferral and earnings opportunities of an IRA make good financial sense. You have until April 15 th of the following year to fund your IRA.  The sooner you make your contributions, the more your money will grow.