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I want to max out again this year at the $3000 level.

I take it you mean "this coming year" (i.e. 2002). The limit for 2001 is still $2000.

BUT, I keep hearing that ROTH is the done thing. What to do?

There are two schools of thought: "Tax free tomorrow is the best deal, even if I pay taxes today to get it," and "Never pay a tax today when you can defer it tomorrow, you never know what the future will hold."

No investment advice fits everybody universally. While the Roth, at least on paper, is often the best deal, whether that is the case for you depends on your specific circumstances. Will you do better by deferring taxes today and paying them tomorow or paying taxes today and never paying them? Do you expect your tax bracket to go up or down when you retire? If you don't have the deduction, do you mess up your finances? What do you think Congress will do to the tax laws between now and your retirement?

I was thinking of also putting $1000 into a no deduction/non-ROTH IRA.

I think you're confused. The IRA contribution cap ($3000 in 2002) applies to ALL IRA's combined: deductible traditional, non-deductible traditional and Roth all together. So, if you max out your deductible and/or Roth contributions, you can't make any other IRA contribution of any other type.

I see no reason to trade a deductible (tax tomorrow) or Roth contribution (tax today) for a non-deductible traditional IRA contribiton (tax today and tomorrow).

Good Luck,
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