Taxes are due April 17, 2007 this year so we have a couple extra days to fund our IRAs. IRAs do not have to be funded in the tax year (2006) but can also be funded for the tax year 2006 up until tax date (April 17, 2007). If you are not an IRA advocate, you should be.

Here’s a summary of the critical numbers you need to know before funding an IRA this year:

• The contribution limit for both Traditional and Roth IRAs is $4,000. If you are at least 50 years old, you can contribute an additional $1,000 for 2006 for a total of $5,000.

• ROTH IRA
  A Roth IRA is funded with after-tax money and withdrawals are 100-percent tax-free if you’ve had the account at least five years and wait until you are 59-1/2 to make withdrawals. The income limit for funding a 2006 Roth is $95,000 (with partial up to $110k) as a single filer or $150,000 (with partial up to $165k) as a joint filer.

• Traditional IRA (Deductible)
  If you are eligible for a retirement plan offered at work, you’re not allowed to deduct your IRA contribution regardless of your income. Otherwise, the deduction is allowed only if you’re single with income below $62,000 or married and file a joint tax return with an income below $100,000.

• Traditional IRA (Non-deductible)
  If your income precludes you from funding a Roth or deductible IRA, you should strongly consider funding a non-deductible IRA this year due to the “loophole” for non-deductible IRAs that will be available to us only for the next few years. I wrote about the non-deductible IRA loophole here.