If you are an employee, coach, or professional athlete at the minor league level and your organization does not offer you a retirement plan, you may meet the eligibility requirements to contribute to an Individual Retirement Account (IRA). Traditional IRAs provide two benefits: they reduce your current tax liability and provide funds for your retirement.
For 2008, contributions are limited to $5,000 or if you are over 50 you may contribute an additional $1,000. A $5,000 contribution into a traditional IRA saves the average taxpayer anywhere from $750 to $1,250 on their current year taxes.