My wife and I are both in our 50's. If our adjusted gross income for 2004 is 152,500, does this mean that our Roth IRA contributions limit for 2004 would be 75% of 3,500, or 2,625? In other words, as the limit goes from 3,500 to 0 as your income goes from 150K to 160K, is the limit pro-rated?

There is a formula that you may use to determine your maximum contribution amount, when your MAGI falls in the phase-out range.

See http://www.investopedia.com/university/ret...ra/rothira1.asp for instructions and examples

Terrific. Thank you, Appleby.