For 2005, a taxpayer can make a Roth IRA contribution equal to the lesser of (1) $4,000 (up to $4,500 if he is age 50 or older), or 100% of the compensation that痴 includible in his gross income for that year. The maximum Roth IRA contribution is reduced by amounts contributed to non-Roth IRAs and is phased out if modified AGI exceeds $150,000 for joint filers. The deadline for establishing and making a contribution to a Roth IRA is the unextended tax return due date for the tax year to which the contributions relate.

If you have questions regarding tax-free rollovers, conversion of traditional IRA to a Roth or recharacterization of a contribution, please consult your tax advisor.