It depends on what kind of IRA you're talking about. Traditional IRAs, Roth IRAs, and Coverdell education savings accounts (formerly known as education IRAs) are each subject to different contribution rules.

You're allowed to contribute up to $3,000 a year to a traditional IRA in years 2002-2004, as long as you're under age 70½ and you have earned income. In addition, if you're age 50 or older, you can make an extra "catch-up" contribution of $500 a year (for years 2002-2005). You can make your annual contribution up to April 15 of the following year, either in a series of payments or in one lump sum. The beauty is that practically anyone who has a paying job can set up and contribute to a traditional IRA. Also, if you meet certain conditions, you may be able to contribute an additional $3,000 a year to an IRA in your spouse's name. However, whether or not you can deduct your traditional IRA contributions will depend on several factors, such as your income, your tax filing status, and whether you or your spouse is covered by an employer-sponsored plan. You may be able to deduct all, a portion, or none of your contribution for a given year. You may even qualify for a partial tax credit (the credit is available to certain taxpayers in years 2002-2006).

Roth IRAs are in some ways the opposite of traditional IRAs. Contributions to Roth IRAs are never tax deductible, but a tax credit may be available and qualifying distributions will be tax free. Also, even though the same $3,000 cap on yearly contributions applies to Roth IRAs, not everyone will qualify to take full advantage of a Roth IRA. The amount you can contribute to a Roth IRA (if anything) will be based on your income and filing status. If you do qualify, you may be able to continue contributing to a Roth IRA after age 70½--a feature traditional IRAs don't offer. As with traditional IRAs, you may be able to contribute an additional $3,000 a year on behalf of your spouse. However, your contribution to a Roth IRA for any tax year must be reduced by contributions made to other IRAs during the same year. Your combined annual contribution to all of your IRAs--Roth and traditional--cannot exceed $3,000.

A Coverdell ESA is designed as a tax-deferred savings vehicle for higher education costs. As with Roth IRAs, contributions are made on an after-tax basis, and qualifying distributions will be tax free. You must meet certain income tests and other criteria to contribute to a Coverdell ESA. You can contribute up to $2,000 per year, and you can make your annual contribution up to April 15 of the following year.