Tax-Smart Allocation

Maximize your retirement savings by funding accounts in the optimal order

Tax-Advantaged
$30K
annual tax-sheltered savings
Tax Savings
$6K
22% marginal rate
Employer Match
$3K
free money from employer
Savings Rate
33.0%
of gross income
Your Info
$100K
30 yrs
yrs
65 yrs
yrs
$30K
8%
%
Employer Benefits
50%
%
6%
%
No cap
Where Your Money Goes
401(k) to Match
HSA
401(k) Max
Roth IRA
Priority Order
1401(k) to MatchPre-tax
$6,000 / $6,000

Get 50% employer match — it's free money

Maxed out
2HSATriple tax-free
$4,300 / $4,300

Tax-deductible, tax-free growth, tax-free medical withdrawals

Maxed out
3401(k) MaxPre-tax
$17,500 / $17,500

Pre-tax compounding reduces your taxable income now

Maxed out
4Roth IRAAfter-tax, tax-free growth
$2,200 / $7,000

Tax-free withdrawals in retirement, no RMDs

Employer adds $3,000/yr in matching contributions on top of your savings. This is free money — always contribute enough to get the full match.
Growth Projection
401(k)
HSA
Roth IRA
Taxable

Projected total at age 65: $6.1M

How the Tax-Smart Allocation Calculator works

Where you put retirement savings matters almost as much as how much you save. This calculator applies the standard funding-order framework — 401(k) match first, then HSA, then Roth IRA, then maxing the 401(k), then taxable investing — to your income and contribution room, and shows the dollar flow.

The order follows the value of each tax break: an employer match is an instant 50–100% return; an HSA is triple tax-advantaged; IRAs and 401(k)s shelter growth from taxes; taxable accounts catch the rest with full flexibility.

Tips to get the most out of it

  • Never leave employer match on the table — it outranks every other use of the money, including most debt paydown.
  • HSA funds invested (not spent) compound tax-free; receipts for past medical costs can be reimbursed years later.
  • Contribution limits change annually — verify current-year limits for your 401(k), IRA, and HSA.

Frequently asked questions

Why fund the 401(k) match before everything else?

A typical match — say 50% on your contributions — is an immediate, risk-free 50% return no investment can rival. Even carrying moderate-rate debt, capturing the full match usually comes first.

What makes an HSA "triple tax-advantaged"?

Contributions are pre-tax (and payroll HSA contributions also avoid FICA), growth is tax-free, and withdrawals for qualified medical expenses are tax-free — no other account gets all three. After 65, non-medical withdrawals work like a traditional IRA. It requires an HSA-eligible high-deductible health plan.

What if my income is too high for a Roth IRA?

Above the income phase-out, many savers use the backdoor Roth: contribute after-tax dollars to a traditional IRA, then convert to Roth. It's legal and common, but the pro-rata rule can create taxes if you hold other pre-tax IRA balances — worth confirming with a tax professional.

When does taxable investing make sense?

After tax-advantaged space is used — or alongside it when you need flexibility, since taxable accounts have no withdrawal age or contribution limits. They're also where early retirees typically bridge the years before penalty-free retirement account access.

From the Knowledge Base

Tax-Smart Account Allocation: The Right Order to Fund Retirement

401(k), Roth IRA, HSA, taxable brokerage — the order you fund these accounts can cost or save you tens of thousands in taxes.

Read the guide