IRA deduction limits go up

You can contribute up to $4,000 a year to an individual retirement account in 2006. (If you are 50 or older, you can contribute an extra $1,000.)

For 2007, the two levels remain unchanged.

Can you deduct it?

Whether you can deduct that contribution depends on your income. Income levels are higher for workers seeking to make tax-deductible contributions to individual retirement accounts.

If your employer offers a retirement plan, you can still take a full deduction if your income is:

• More than $75,000 but less than $85,000 for a married couple filing a joint return or a qualifying widow(er).

• More than $50,000 but less than $60,000 for a single individual or head of household.

• Less than $10,000 for a married individual filing a separate return.