Maximize Your Retirement Accounts

The Accounts

Every Account Available to You

The tax code contains multiple legal instruments designed to help Americans shelter wealth from taxation. Most people use only one or two. The wealthy use all of them, stacked in priority order.

401(k) / 403(b)

$23,500/yr · +$7,500 catch-up (50+)

Pre-Tax or Roth

The most widely held retirement account. Employer match is free money — never leave it uncaptured. BrokerageLink windows let you escape high-fee fund menus.

Roth IRA

$7,000/yr · +$1,000 catch-up (50+)

Tax-Free Growth

After-tax contributions grow completely tax-free — forever. No required minimum distributions. High earners use the Backdoor Roth to bypass income limits.

HSA

$4,300 individual · $8,550 family

Triple Tax Benefit

The only account with triple tax advantages: deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. Invest it all — pay medical bills from pocket.

Solo 401(k)

Up to $70,000/yr ($77,500 catch-up)

Self-Employed

For self-employed individuals. Contribute as both employee ($23,500) and employer (25% of net income). Roth option available. Free to open at Fidelity in 20 minutes.

SEP-IRA

Up to $70,000/yr

Self-Employed

Simpler than Solo 401(k) for sole proprietors. Employer-only contributions up to 25% of net SE income. Allows employees. No Roth option.

Self-Directed IRA

Same as Traditional / Roth IRA

Alternative Assets

Invest your IRA in rental properties, tax liens, private equity, precious metals, and crypto — all inside the tax shelter. Requires a specialized custodian and extreme care around prohibited transaction rules.

Priority Order

The Optimal Stacking Order

Not all dollars are equal. Deploy each contribution dollar in this order for maximum tax-sheltered wealth building:

1

Capture the Full Employer Match

An unmatched match is an immediate, guaranteed loss of compensation. A 3% match on $100,000 is $3,000/year in free money. Uncaptured over 20 years at 7%: over $123,000 permanently lost.

Action: Raise your contribution % to the match threshold today

2

Max the HSA

Triple tax advantage beats every other account. Invest 100% in index funds. Pay all medical bills out of pocket. Save every receipt — there's no IRS deadline to reimburse yourself.

$4,300 individual / $8,550 family · 2026

3

Max the 401(k)

Switch to BrokerageLink if available — the fee gap between actively managed funds (0.71% avg) and index ETFs (0.04%) costs over $700,000 on a $500K balance over 30 years.

$23,500 · +$7,500 catch-up (age 50+) · 2026

4

Mega Backdoor Roth (if available)

If your plan allows after-tax contributions and in-plan Roth conversions, you can contribute up to $46,500 more — immediately converted to Roth. Up to $70,000/year into Roth equivalent.

Requires plan that allows after-tax contributions + in-service conversion

5

Backdoor Roth IRA

Income too high for direct Roth IRA? Contribute $7,000 to a non-deductible Traditional IRA, then immediately convert to Roth before any growth occurs. Zero tax on the conversion if done correctly.

$7,000/person · $8,000 age 50+ · 2026

6

Solo 401(k) or SEP-IRA (if self-employed)

Any self-employment income opens access to additional shelter. W-2 employees with a side business can stack the employee portion in their employer 401(k) AND the employer contribution in a Solo 401(k).

Up to $70,000 combined · 2026

The Gap

Full Optimization vs. Doing the Minimum

Strategy	Annual Contribution	10 Years	20 Years	30 Years
Employer match only (3%)	~$3,000	$41K	$123K	$284K
Standard 401(k) max	$23,500	$323K	$966K	$2.23M
401(k) + Roth IRA + HSA	$35,800	$493K	$1.47M	$3.40M
Full stack (all accounts)	$78,500+	$1.08M	$3.23M	$7.45M

Assumes consistent contributions at 7% gross return. Illustrative only.

Advanced Strategies

Power Moves Most People Miss

The HSA "Receipt Vault" Strategy

Pay all medical expenses out of pocket. Save every receipt with no deadline to reimburse yourself. Your HSA grows tax-free for decades. In retirement, submit those receipts and withdraw the accumulated total tax-free — effectively converting the HSA into a tax-free cash account you fund retroactively.

The Backdoor Roth — Step by Step

1) Contribute $7,000 to a Traditional IRA (non-deductible). 2) Convert immediately to Roth before any growth occurs. 3) Report on IRS Form 8606. 4) Repeat each January. Important: roll any existing pre-tax IRA balances into your employer 401(k) first to avoid the pro-rata rule making part of the conversion taxable.

Roth Conversion Ladder

If you're entering a low-income year (sabbatical, early retirement, business loss year), convert pre-tax IRA or 401(k) funds to Roth at your lower current tax rate. Saving even 10–15% on a $100,000 conversion is $10,000–$15,000 tax-free — permanently. Each converted tranche begins a 5-year clock before it can be accessed penalty-free.

What to Avoid

The 6 Most Expensive Mistakes

MISTAKE 01

Not Capturing the Full Employer Match

A 3% match on $100K = $3,000/year in free money. Uncaptured over 20 years at 7%: $123,000 permanently gone.

✓ Fix: Raise your contribution to the match threshold today.

MISTAKE 02

Cashing Out an Old 401(k)

Taxes + 10% early withdrawal penalty + all future compounding lost. On $60K in the 22% bracket: ~$19,200 gone immediately.

✓ Fix: Always do a direct rollover. One phone call. Costs nothing.

MISTAKE 03

Spending Your HSA

A 40-year-old who spends $4,300/year instead of investing it forgoes approximately $560,000 in tax-free wealth by age 70.

✓ Fix: Pay medical from personal funds. Invest 100% of HSA dollars.

MISTAKE 04

High-Fee Funds When BrokerageLink Is Available

On $300K, paying 0.71% vs. 0.04% in fees costs over $400,000 in lost compounding over 20 years.

✓ Fix: Call your plan administrator. Open BrokerageLink. Switch to index ETFs.

MISTAKE 05

Converting Roth in the Wrong Year

A $100K conversion at 32% costs $32,000. The same conversion at 12% costs $12,000. Poor timing = $20,000 mistake per event.

✓ Fix: Execute conversions in low-income years only.

MISTAKE 06

Self-Employed With No Retirement Account

Nearly 40% of self-employed individuals have no retirement account. A Solo 401(k) at Fidelity is free and takes under 20 minutes to open.

✓ Fix: Open a Solo 401(k) this week.

Max Every Account:401(k), Roth IRA,HSA & Beyond