David, I did a search and came up with this:
What is a Roth IRA?
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Depending on your personal tax situation, a Roth IRA can be an excellent alternative to a Traditional IRA. Not everyone, however, is eligible to contribute to a Roth IRA. To be eligible to contribute:
You must have compensation income for the year; and
Your "modified adjusted gross income" must not exceed certain limits
Although contributions to a Roth IRA are not deductible, Roth IRAs can distribute their earnings free of federal income or penalty taxes if certain requirements are met. (Withdrawals of contributions made to a Roth IRA are not subject to federal income or penalty taxes.) For earnings to be withdrawn tax-free, they cannot be distributed until five tax years have passed since the first day of the tax year in which you made your initial Roth IRA contribution (including a conversion contribution from a Traditional IRA). For 2005, eligible individuals can generally contribute up to $4,000, or 100% of compensation, whichever is less. An individual's eligibility to make Roth IRA contributions phases out at certain levels of "modified adjusted gross income". Please see table below for more details).
If you would like to learn more about which type of IRA might be most appropriate for you, our comparison table provides some basic background information. If you are interested in converting your Traditional IRA to a Roth IRA, you may want to use this checklist to see if a conversion may be right for you.1 If you would like to find out more about rollovers or how to rollover an IRA to E*TRADE Securities, please visit our Rollover Center. Before converting a Traditional IRA to a Roth IRA, we recommend that you consult a tax professional.
How much are you Eligible to Contribute to a Roth IRA for your 2005 tax year?
Federal Income Tax Filing Status Modified Adjusted Gross Income ("MAGI") Maximum Amount You Can Contribute for 2005 (not including catch-up contributions)
Single Up to $95,000 $4,000
$95,001-$109,999 Less than $4,000
$110,000 or more Not eligible
Married, filing jointly (MAGI numbers reflect both spouses' combined incomes) Up to $150,000 $8,000 ($4,000 per IRA)
$150,001-$159,999 Less than $8,000 ($4,000 per IRA)
$160,000 or more Not eligible
Married, filing separately Up to $9,999 Less than $4,000
$10,000 or more Not eligible
1. Please note that our Roth to Traditional checklist is intended to serve as an educational tool, not investment or tax advice. Your circumstances are unique. Therefore you should consult a tax professional if you feel you need more personal advice.
here's another link
http://www.gofso.com/Premium/TS/fg/fg-Roth_IRA.html