With the expected increase in income tax rates next year due to the Medicare Surtax and the possible sunsetting of the Bush tax cuts, now may be a great time to set up a Roth IRA. Unlike a regular IRA, a ROTH is completely tax-free when funds are withdrawn (assuming you meet certain requirements on how long the account is open, etc.). However, when you contribute to a ROTH, you do not get a current deduction.
Farmers age 50 and over can put $6,000 into a ROTH IRA this year, but if your total gross income exceeds $183,000 for a married couple, then you cannot contribute to a ROTH.
There is a "backdoor" way to contribute to the ROTH and assuming you have no regular IRA accounts, it should not cost you much tax.
First, you contribute the maximum amount to a regular non-deductible IRA. Second, you then convert this regular IRA to a ROTH IRA after waiting a couple of weeks or so. The only tax owed is on the interest earnings that have accumulated in the IRA account.
If you have large balances in a regular IRA account, this conversion will most likely largely taxable since the non-deductible IRA balance is compared to all of the regular IRA balances and only the non-deductible fraction is used on the conversion.
If you have no regular IRA accounts, your income is over $200k, and you want to make a ROTH IRA contribution, this is the way to go.