Retirement Planning Roadmap
Follow this recommended order to maximize your retirement savings. Each step builds on the previous one to optimize your tax advantages and employer benefits.
401(k) Employer Match
Always contribute enough to get the full employer match first. This is free money!
Roth IRA
Max out your Roth IRA for tax-free growth and withdrawals in retirement.
HSA (Health Savings Account)
Triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free medical withdrawals.
Max 401(k)
After the above, go back and max out the rest of your 401(k) contributions.
Catch-Up Contributions
If you are 50+, take advantage of additional catch-up contribution limits.
FSA (Flexible Spending Account)
Use pre-tax dollars for medical or dependent care expenses. Use it or lose it!
Backdoor Roth IRA
High earners can use this strategy to contribute to a Roth IRA indirectly via traditional IRA conversion.
Mega Backdoor Roth
If your plan allows after-tax contributions and in-service conversions, you can supercharge your Roth.
529 Education Savings Plan
If you have children or plan to, use a 529 plan for tax-free growth and withdrawals on qualified education expenses.
Taxable Brokerage Account
After maxing all tax-advantaged accounts, invest additional savings in a taxable brokerage account for unlimited contributions and flexibility.