INDIVIDUAL RETIREMENT ACCOUNTS (“IRAs”)

IRA contributions due as of date of April 15 for prior year.

IRA Maximum Contributions (Yearly Limits)*

                                   Under Fifty              Fifty and Over                  

Year                            Yearly Limit            Yearly Limit                     

2002-2004                   $ 3,000.00              $ 3,500.00

2005                            $ 4,000.00              $ 4,000.00

2006-2007                   $ 4,000.00              $ 5,000.00

2008+                          $ 5,000.00              $ 6,000.00

IRA Deductibility

                                   Joint Returns Both Participating             Single Taxpayer Participating     

                                   In Other Qualified Plan                          In Other Qualified Plan

                                   (“Active Participant”)                             (“Active Participant”)

Year                            Applicable Dollar Amount                      Applicable Dollar Amount

1998                            $ 50,000.00                                          $ 30,000.00

1999                            $ 51,000.00                                          $ 31,000.00

2000                            $ 52,000.00                                          $ 32,000.00

2001                            $ 53,000.00                                          $ 33,000.00

2002                            $ 54,000.00                                          $ 34,000.00

2003                            $ 60,000.00                                          $ 40,000.00

2004                            $ 65,000.00                                          $ 45,000.00

2005                            $ 70,000.00                                          $ 50,000.00

2006                            $ 75,000.00                                          $ 50,000.00

2007+                          $ 80,000.00                                          $ 50,000.00

*IRA AGI Deductibility Formula

The amount of the allowable deduction for qualified retirement contributions is the lesser of gross income or the Yearly Limit, less a reduction for individuals already participating in a pension plan, or married to individuals both of whom participate in pension plans as follows: (i) Yearly Limit × ((ii) modified AGI − (iii) applicable dollar amount) ÷ (iv) $10,000. The formula for the reduction of the IRA contribution of an individual who is not an active participant, but whose spouse is an active participant, is: (i) Yearly Limit × ((ii) modified AGI − (iii) $150,000) ÷ (iv) $10,000.

Copyright 1996 - 2006, McChesney & Dale, P.C.