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Anyone with earned income can contribute to an IRA. The income restrictions are only on taking a tax deduction for that contribution.

Things have been this way for a long time - since at least the 97 tax changes if not longer.

As far as your brokerage or other IRA custodian is concerned, it's just an IRA account. They don't care if you can deduct the contributions or not. So it is up to you to keep track of those non-deductible contributions so that you don't pay tax on them in the future. The IRS makes this a bit easier, as you will need to complete form 8606 to report your non-deductible IRA contributions.

And before you ask - you can make contributions for the 2007 year until April 15, 2008. It is too late for any earlier years.

--Peter
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