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You got some good advice and things to think about above. My two cents is that in your case the Roth is not necessarily so hot. One of the prime benefits of the Roth is that not only can you let it grow tax free, but so can your children and their children. If you have no children, and assuming the tax rates today are equal to the tax rates tomorrow (when you begin distributions) and you have only the $3000 (in 2002) to invest (and you end up with a net amount of less than $3000 in the Roth to pay the income tax) then, financially, the deductible IRA and the Roth are equivalent. If you have the $3000 and the tax on the $3000 (so the full $3000 gets into the Roth) then the Roth would be better.
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