The 2004 base amounts are:

$25,000 for single, head of household, or qualifying widow/widower with a dependent child $25,000 for married individuals filing separately who did not live with their spouses at any time during year $32,000 for married couples filing jointly $0 for married persons filing separately who lived together during year

If your benefits are taxable, you can avoid estimated tax payments and minimize your tax bill next year by having federal income tax withheld from your benefits. Simply complete Form W-4V, Voluntary Withholding Request, and file it with Social Security Administration.

$0-$10,000 — Married Filing Separately (and you lived with your spouse at any time during year)

$95,000-$110,000 — Single, Head of Household, or Married Filing Separately (and you did not live with your spouse)

Contributions to Spousal Roth IRA

You can make contributions to a Roth IRA for your spouse provided you meet income requirements.

When to Make Contributions

Contributions to a Roth IRA can be made at any time during year or by due date of your return for that year (not including extensions). Roth IRA contributions are not tax deductible and are not reported on your tax return. On other hand, you do not include in your gross income, and therefore are not taxed on, any qualified distributions or distributions that are a return of your regular Roth IRA contributions or that are rolled over into another Roth IRA.

The Roth IRA is an incredibly valuable retirement vehicle since distributions are made tax-free. If you are considering retirement planning, make sure to investigate Roth.