IRA Rules: Lets make sure you meet the income eligibility rules for a Roth IRA. Lets take a look at the modified adjusted gross income (MAGI) requirements;
2007 Roth IRA eligibility for full $4,000 contribution
Single: $99,000
Married: $156,000
Single filers with MAGI’s that fall between $99,000 and $114,000, and joint filers with combined income between $156 ,000 and 166,000, will be able to make only partial contributions. If you are married, you both can make the full contribution ($8000 in 2007) to a Roth IRA (assuming that your joint income is below the cutoff) even a spouse who is working full-time raising the kids or doesn’t work can make a contribution. In a nonworking spousal Roth IRA, all the same IRA rules apply.
The maximum annual contribution limit is:
2007: $4,000
2008: $5,000
2009 and beyond: inflation adjustments will be made in $500 increments.