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Hello, I'm just starting to realize that I should be contributing to an IRA(s), and I've read the Fool documents on IRAs, but there's a question I need clarified.

My background is I'm 28, married w/one young child, my wife doesn't work, I contribute the full amount to my company's 401k, and I make around 100K but less than 150K.

When I read the Fool stuff, I was under the impression that I can make a maximum contribution of $2000 to an IRA per year, my wife can do the same, and we could make a maximum contribution of $500/year to an Education IRA for my son. I thought it was pretty clear.

I was then discussing it with a coworker and he said that the $2000 limit was only for DEDUCTIBLE contributions and that there was not really a limit for the amount I can contribute to these IRAs. I also gathered, from what I read, that because of my 401k and salary, that I couldn't make DEDUCTIBLE contributions. If that's the case can I just make any amount of contribution I want to a Roth and/or Education IRA without limits? That would mean I could funnel any amount of money to a Roth IRA, let it build tax-free, and withdraw it tax-free. This doesn't sound right, it sounds too good to be true. Or, is my coworker correct about traditional IRAs, but not Roths?

It just wasn't clear to me in the Fool IRA section.

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