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A taxpayer under the age of 50 can contribute to a Roth IRA the lesser of $4,000 for 2007 or the amount of earned income. If the taxpayer is 50 or older the max contribution is the lesser of $5,000 or the amount of earned income. There are other limiting factors to determine if you are eligible - see the IRS Publication 590.

Note: as contributions to a Roth are after tax money, contributing to one does NOT lower your current tax bill. Contributing to a regular IRA will.

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