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I was reading through the IRS information that was posted and did I understand correctly that there is no income limit when contributing to a Traditional IRA? Just not to exceed $4000, or did I miss something?

That is correct. The only requirement is that you must have at least as much earned income as you contribute. The rub is, above certain income limits, you may not deduct the contribution. The income limits depend on your filing status, your eligibility for a retirement plan at work, and, if married, your spouses' eligibility for a retirement plan at work. The detailed requirements are in Publication 590.

Also, this $4000 counts toward the $15,500 limit for 2007, correct?

Assuming that you are talking about the 401(k) plan limit of $15,500 for 2007, no. An IRA is separate from a 401(k), and their limits do not affect each other, except for the previously mentioned interaction between 401(k) and MAGI, to be eligible for a Roth.

Also, if I max out both our Roth IRA's for 2007 and don't contribute going forward (if we exceed the limit) would it be worthwhile to let the money continue to grow in this account or should I move it as soon as I know we will not be able to contribute anymore? I opened Target Retirement accounts and would like to continue with them.

Assuming that the $4000 contribution grows at an 8% average rate for 30 years, it will grow to over $40k if you leave it untouched. With two accounts, you will end up with over $80k.

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