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I thought that people could put $3000 in a Roth Ira for 2002. I thought I read that 21 states have not adopted the federal goverments new ira deductions. I live in Arizona. Does mean I can only contribute $2000 or $3000 to a roth ira?

Thanks

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You are restricted to the lower of the federal or your state limit. It is likely that most of the states will match the federal contribution limit.

You have until April 2003 to make the 2002 contribution. To avoid the hassel of having to take a distribution to handle excess contributions, it would be best to only contribute the $2,000 now. If your state changes its limits then you can contribute the additional $1,000.
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My understanding is that many of the states that don't automatically recognize the federal limits are scrambling to change their laws. If Arizona was on the list of the states that aren't yet at $3,000, I'd take a more proactive position and suggest calling your local state legistlator's office to find out what the status is of changing the Arizona law. I doubt there would be many people against voting for such a measure, but it never hurts to let them know your opinion.
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