My wife and I work full time. We are over 50 years of age and have separate IRA's. Together we will gross over $160,000, but our adjusted income will be less than that amount. Based on the information provided, what is the maximum amount we can contribute individually to our traditional and Roth IRA's for calendar year 2007? Will the contribution amount increase in 2008, 2009, etc?

Are you covered by a retirement plan where you work?

Yes. My wife and I both have 401(k) plans at work. My wife and I did not "max" our 401(k) contributions in 2006. One of us will "max" our 401(k) contribution in 2007.

You CANNOT contribute to a Roth IRA; you make too much money.

You CAN contribute to a traditional IRA, but the contributions will NOT be deductible.

Max out the 401Ks.