Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Because Emancipation Day, April 16, 2007, is a legal holiday in the District of Columbia, contributions for 2006 must be made by April 17, 2007.

There is a 6% excise tax on excess contributions not withdrawn by the due date (plus extensions) for your return. You will not have to pay the 6% tax if any 2006 excess contributions are withdrawn by the due date (plus extensions).

For 2006, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified adjusted gross income (AGI) is:

If you received nontaxable combat pay in 2004 or 2005, and the treatment of the combat pay as compensation means that you can contribute more for those years than you already have, you can make additional contributions to an IRA for 2004 or 2005 by May 28, 2009. The contributions will be treated as having been made on the last day of the year for which they were made. If you have already filed your return for a year for which you make a contribution, you must file Form 1040X, Amended U.S. Individual Income Tax Return, by the latest of:

If you were at least age 70½ and you had a distribution made by the trustee of your IRA directly to a charitable organization, it may be nontaxable.

A qualified charitable distribution (QCD) is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must have been at least age 70½ when the distribution was made. Your total QCDs for the year cannot be more than $100,000. If you file a joint return, your spouse can also have a QCD of up to $100,000. However, the amount of the QCD is limited to the amount of the distribution that would otherwise be included in income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income.

If you are a qualified public safety employee, distributions made after August 17, 2006, from a governmental defined benefit pension plan are not subject to the additional tax on early distributions. You are a qualified public safety employee if you provided police protection, firefighting services, or emergency medical services for a state or municipality, and you separated from service after you attained age 50.

A qualified reservist distribution is not subject to the additional (10%) tax on early distributions. A qualified reservist distribution is a distribution (a) from an IRA or elective deferrals under a section 401(k) or 403(b) plan, or a similar arrangement, (b) to an individual ordered or called to active duty (because he or she is a member of a reserve component) for a period of more than 179 days or for an indefinite period, and (c) made during the period beginning on the date of the order or call and ending at the close of the active duty period. You must be ordered or called to active duty after September 11, 2001, and before December 31, 2007.

If you received a qualified reservist distribution before 2006 and paid the 10% additional tax, you can claim a refund of that tax by filing Form 1040X to amend your return for the year in which you received the qualified reservist distribution. You have until August 16, 2007, to claim any refund or tax credit that would otherwise be barred by a statute of limitations.

You can choose to recontribute part or all of the distributions to an IRA. Generally, these additional contributions must be made within 2 years after your active-duty period ends. However, if your active duty period ended before August 17, 2006, you have until August 17, 2008, to make these special contributions. You cannot take a deduction for these contributions. However, the normal dollar limitations for contributions to IRAs do not apply to these special contributions, and you can make regular contributions to your IRA, up to the amount otherwise allowable.

If you have elected to treat part or all of your elective deferrals to a qualified retirement program (401(k) or 403(b) plans) as after-tax Roth contributions to a designated Roth account, any distribution from your designated Roth account can be rolled over on a tax-free basis only if the rollover is made to another designated Roth account or Roth IRA that you maintain. See Publication 590, Individual Retirement Arrangements (IRAs), for more information.

If you were age 50 or older before 2007 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2006 is generally the lesser of:

However, if your modified AGI is above a certain amount, your contribution limit may be reduced.

Participants in the TSP who are age 50 or older at the end of the year generally can make catch-up contributions to the plan. For 2006, the maximum catch-up contribution increased to $5,000. For more information, see Publication 721.

If you were age 50 or older before 2007, the most that could be contributed to your traditional IRA for 2006 is the smaller of the following amounts:

The following changes apply to qualified plans. For more information, see Publication 560.

The following changes apply to SEPs. For more information, see Publication 560.

The following change applies to SIMPLE plans. For more information, see Publication 560.

The following changes apply to 403(b) plans. For more information, see Publication 571.

For 2007, if you participated in a 401(k) plan and the employer who maintained the plan filed for bankruptcy, you may be able to contribute an additional $3,000 to your IRA. For this to apply the following conditions must be met.

If you choose to make these additional contributions, you cannot use the higher contribution and deduction limits for individuals who are age 50 or older.

For distributions in tax years beginning after 2006, you can elect to exclude from income an eligible retirement plan distribution if you are a retired public safety officer. The distribution must be from a governmental plan and must be transferred directly to pay premiums for accident or health insurance or qualified long-term care insurance for you, your spouse, or your dependents.

The maximum annual exclusion is $3,000. You cannot deduct these premiums as medical expenses or, if you are self-employed, health insurance costs.

For 2007, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified adjusted gross income (AGI) is:

For 2007, if you are not covered by a retirement plan at work, your deduction for contributions to a traditional IRA may be reduced (phased out) if you either live with your spouse at any time during 2007 or file a joint return for 2007.

If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your AGI is more than $156,000 but less than $166,000. If your AGI is $166,000 or more, you cannot take a deduction for contributions to a traditional IRA. See How Much Can You Deduct in chapter 1 of Publication 590.

After 2006, you may be able to roll over tax free all or a portion of a distribution you receive from an eligible retirement plan of a deceased employee. You must be the designated beneficiary of the employee, but you cannot be the surviving spouse. The distribution must be a direct trustee-to-trustee transfer to your IRA that was set up to receive the distribution. The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. For information on inherited IRAs, see Publication 590.

For 2007, you may be able to claim the retirement savings contribution credit if your modified adjusted gross income is not more than:

For tax years beginning after 2006, the nontaxable part of an eligible rollover distribution (such as after-tax contributions) from a qualified retirement plan can be rolled over to another qualified retirement plan or to an annuity contract described in section 403(b). Previously, this part of the distribution could be rolled over only to another qualified retirement plan that was a defined contribution plan.

The rollover must be a direct trustee-to-trustee transfer. The plan to which the rollover is made must separately account for these contributions and the earnings on them.

For 2007, your Roth IRA contribution limit is reduced (phased out) in the following situations.

The following changes apply to qualified plans. For more information, see Publication 560.

The following changes apply to SEPs. For more information, see Publication 560.

The following change applies to SIMPLE plans. For more information, see Publication 560.

The following changes apply to 403(b) plans. For more information, see Publication 571.