Traditional IRA contributions can be tax deductible or partially tax deductible based on MAGI. In 2014, an individual with a MAGI of up to $70,000 is eligible for at least partial deductibility. There are no income limits on who can contribute to a traditional IRA.
When the water heater breaks / leaks whatever the pressure tank is going to loose pressure telling the pump to come on and the pump will run continually as it can not build pressure to shut it off.
If you have power to the unit, the standby light is on, and the red lights come on when calling for hot water, yet you have no hot water, then it sounds like you have a dead water heater. If you have red lights on when no water is called for, turn off the circuit breaker feeding the water heater. There is a problem. If the water is just not as hot as it was earlier, consider whether the groundwater temperature has dropped.