For 2007, the limit is $4,000 or, if you will be 50 or older at any time during the year, $5,000.

In 2008, the ceiling will rise to $5,000 or, for those 50 or older, $6,000.

After 2008, the limits will be indexed to inflation and rise in increments of $500.

These limits apply to all IRAs combined. You can split your contributions between traditional and Roth IRAs. You cannot contribute to either type of IRA if your income exceeds certain limits.