When it comes to individual retirement accounts, you have several choices. All offer some tax savings. The big difference is when, exactly, you get those savings.

In this tax tip: • Dollar limits   • Income limits   • 'Enron' $8,000   • Other IRA considerations

For some people, a traditional IRA still has a lot of appeal. These taxpayers find that this type of savings plan helps build tomorrow's nest egg while reducing today's taxes, thanks to a deduction that doesn't require itemizing.

Dollar limits
Single filers who have no company retirement plan can contribute -- and deduct from their taxes -- up to $5,000 they put in a traditional IRA for the 2008 tax year.

Married couples filing jointly and who have no employer-provided plans can deduct up to $10,000 in contributions, $5,000 in separate IRAs for each partner.

The contribution limits are even better for workers age 50 or older. They can sock away an extra $1,000 each tax year, giving you a total of $6,000 for 2008.

If you've already maxed out your 2008 contributions and are planning your 2009 taxes, the contribution amounts are the same. Just be sure that if you put in 2009 money before April 15, you note on your deposit slip that it's for the 2009 tax year. You don't want to go through the hassle of correcting an excess contribution or worse, paying a penalty for your mistake. But there is one situation where more than the usual amount is allowed; more on this later.

Before the lure of lower taxes prompts you to open a traditional IRA, be aware that a $5,000 (or $6,000 if you're older) contribution won't automatically cut your tax bill by that much. Rather, at the bottom of Form 1040 or Form 1040A, you subtract your contribution amount from your income to come up with your adjusted gross income, and then you figure your tax bill. But the less taxable income you have, the smaller the check you have to send to the Internal Revenue Service.

OK, even though it's not a direct contribution-to-write-off situation, you've determined that a traditional IRA is a good move, but you don't have the money right now. No problem. Just because the tax year ended on Dec. 31, that doesn't mean your annual contribution opportunity stopped then, too.

The allowable contribution amounts can be deposited into your traditional IRA as late as the April 15 filing deadline and still count toward cutting your current tax bill. You even can file your return before you make your contribution.

Just be sure you actually put the money in your account by the April deadline. Remember, the financial institution that manages your IRA sends account activity information to Uncle Sam, as well as to you.

Income limits
Of course, for every rule that makes it easier to contribute to a traditional IRA, there are others that complicate the deduction process.

If you or your spouse has a retirement account at work, including a 401(k) plan option, a Keogh or SEP-IRA for self-employment income, you might not be able to take the full tax break of a traditional IRA. But all immediate tax savings may not be lost. Some of your traditional IRA contribution still might be deductible, as long as your income falls below IRS limits.

For 2008 returns, a single or head-of-household filer with a company-provided pension plan can earn up to $63,000 and still get a partial IRA deduction. The earnings cap is $105,000 for joint filers where each partner has a company retirement plan. If you don't have a company plan but your spouse does, the modified adjusted gross income limit before you lose your full deduction is even higher -- $169,000.

The work sheet in the Form 1040 instructions, or 1040A booklet if you file that form, will help you figure out how much of your contribution you can deduct.

'Enron' $8,000
Some IRA account holders can put in more than $5,000 into an IRA for tax years 2008 and 2009. However, the circumstances allowing for the additional contributions are not what any worker wants to encounter.

If you participated in a 401(k) plan and your employer who maintained the plan went into bankruptcy in an earlier year, you can put in an additional $3,000 into your IRA account to make up for losses your workplace retirement plan suffered. That means your total contribution can be $8,000 instead of $5,000.

This additional retirement account contribution, dubbed the Enron IRA catch-up provision of the 2006 Pension Protection Act, has a few other requirements. The key one is that your employer must have been indicted or convicted in connection with business transactions related to the company's bankruptcy that wiped out employee accounts, hence the Enron nickname.

The law also requires that:

• You participated in a 401(k) plan under which the employer matched at least 50 percent of your contributions to the plan with company stock. • You participated in the 401(k) plan six months before the employer filed for bankruptcy. • The employer (or a controlling corporation) must have been a debtor in a bankruptcy case in an earlier year.

If you are eligible for and use the Enron IRA catch-up option, which will be in effect through 2009, you cannot use the 50-or-older add-on; that is, you can't put an extra $1,000 into your account on top of the $8,000.

Your tax software should help you calculate any additional money you can contribute and deduct under this special law. If you still prefer paper, you can use work sheet 1-2 on Page 19 and work sheet 2 in Appendix B (Page 89) of IRS Publication 590 to help you determine if you qualify for the Enron catch-up contribution.

Other IRA considerations
Employer-sponsored retirement options aside, keep in mind that you might not be able to max out your IRA contribution at the $5,000 (or $6,000 if you're older) limit.

You can contribute, and potentially deduct, only as much as you earn. If you make $3,800 this year, then that's the most you can put in any IRA.

And if you're 70½ or older, you can't put any more money into your traditional IRA. In fact, that's the age when the IRS demands you start taking money out of your traditional, tax-deferred retirement account.

So is a traditional IRA right for you? Only a thorough examination of your overall financial and tax circumstances can tell. Do your homework and look at the earnings potential and tax savings -- now and in the future -- of each IRA type. You've got until April 15 to decide which is best for you.

For more tax-filing information and tips, check out Bankrate's Tax Guide.

Freelance writer Kay Bell writes Bankrate's tax stories from her Austin, Texas, home. She also writes two tax blogs, Eye on the IRS for Bankrate and Don't Mess With Taxes, and is the author of the book "The Truth About Paying Fewer Taxes."