I know you cant deduct contributions to a ROTH, but I was told that I can even make a contribution to a ROTH because of my income. What are the income limits? Any retirement planning suggestions?

I'm assuming you made a typo and it should read "I was told i cant even make a contribution to a ROTH because my income.....

For yr 2008, contributions to a ROTH IRA are phased out when:

1. Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $159,000. You cannot make a Roth IRA contribution if your modified AGI is $169,000 or more.

2. Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2008 and your modified AGI is at least $101,000. You cannot make a Roth IRA contribution if your modified AGI is $116,000 or more.

3. Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.

So, if your income exceeds the threshold amount for your filing staus, then you can not make contributions to a ROTH IRA.

If I was self employed and started a retirement plan would there we threshold limits and phaseouts?

If you were self-employed, you would have not income threshold constraints, but you must abide by payroll requirement rules and non-discrimination rules.

Discuss this with your CPA for more details.

To add to what Steve said, if you started a SEP, your contributions to a SEP would be limited to 25% of your wages or $45k for yr 2007. So there are limitations on SEP contributions, but there are no income limitations to qualify.