The IRS gives you until April 15th of this year to make a contribution to a traditional IRA or a Roth IRA for the 2007 tax year. The 2007 limits are $4,000 maximium, and $5,000 maximium if you were age 50 or older in 2007.
The IRS also allows you to take a tax credit for eligible contributions to a qualified retirement plan (i.e. Traditional IRA, Roth IRA, 401K, 403B, 457, 501C, SEP or a SIMPLE IRA.) if your adjusted gross income is below a certain limit. You can also claim the credit before you actually make the contribution, as long as that the contribution is made April 15th.
The great thing about a tax credit it that it is a dollar for dollar reduction in any tax amount you owe, which makes it more 'valuable' than a tax dedcution. A tax deduction only reduces the amount of taxable income.
Source:
'Publication 509 (2007), Individual Retirement Arrangements', IRS
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