-- Working spouse. For joint filers, the deductibility of the working spouse's contribution in '08 is phased out with an AGI of between $85,000 and $105,000 ($89,000 and $109,000 in '09).

As with most tax issues, it's always wise to consult with your tax advisor to determine how these limits apply to you.

What about a Roth IRA?

You can also fund a Spousal Roth IRA depending on your income. To qualify for a Roth IRA for 2008, a couple cannot earn more than $169,000. And, similar to a traditional IRA, eligibility phases out with an adjusted gross income between $159,000 and $169,000. These limits also go up in 2009.

Remember that a contribution to a Roth IRA is made with after-tax dollars and is never deductible. On the positive side, however, withdrawals are tax-free. Depending on your income now -- and projected future income -- a Roth might make sense for you and your spouse.

Make your money work for you.

Saving for retirement should be one of your top goals, no matter what your current work status. So whether one of you is a stay-at-home mom or dad, has decided to take a break from the everyday work world, or has had a change in job status because of the economy, don't take a break from saving for the future. With a Spousal IRA, if you're married and filing jointly you can still continue to work together on your retirement savings -- and take maximum advantage of the potential for tax-deferred growth.

What happens when the nonworking spouse goes back to work? Not a thing. He or she can keep contributing to the IRA because, once opened, a Spousal IRA is an Individual Retirement Account like any other. If you can afford it, a Spousal IRA not only makes sense, it's essential for your future well-being. So don't wait. Open and fund your IRAs before April 15th for 2008 -- and while you're at it, plan ahead and get a jump on 2009.