| 401(k), 403(b), 457 plans, and TSP |
$22,500 (under age 50)
$30,000 (age 50 or older) |
Pre-tax contributions reduce taxable income. Tax-deferred growth. |
Contribute the maximum allowed. If over 50, take advantage of catch-up contributions. |
| Traditional IRA |
$6,500 (under age 50)
$7,500 (age 50 or older) |
Potentially tax-deductible contributions. Tax-deferred growth. |
Contribute the maximum if you are below the income limits for deductibility. Consider a backdoor Roth IRA if above income limits. |
| Roth IRA |
$6,500 (under age 50)
$7,500 (age 50 or older) |
Contributions are not tax-deductible, but qualified withdrawals are tax-free. |
Contribute the maximum if you are below the income limits. Consider a backdoor Roth IRA if above income limits. |
| SIMPLE IRA |
$15,500 (under age 50)
$19,000 (age 50 or older) |
Pre-tax contributions reduce taxable income. Tax-deferred growth. |
Contribute the maximum allowed. If over 50, take advantage of catch-up contributions. |
| Solo 401(k) |
$66,000 total, including employee and employer contributions (under age 50)
$73,500 (age 50 or older) |
Pre-tax contributions reduce taxable income. Tax-deferred growth. |
Maximize employee contributions up to the limit and add employer contributions if self-employed to reach the total limit. |
| Simplified Employee Pension (SEP) IRA |
Lesser of 25% of compensation or $66,000 |
Pre-tax contributions reduce taxable income. Tax-deferred growth. |
Contribute as much as possible up to the limit, considering your self-employment income and the percentage cap. |
| Health Savings Account (HSA) |
$3,850 (individual coverage)
$7,750 (family coverage)
Additional $1,000 catch-up (age 55 or older) |
Triple tax advantage: contributions are tax-deductible, growth is tax-free, and qualified medical expenses are tax-free. |
Maximize contributions to benefit from the triple tax advantage, especially if you have high-deductible health insurance. |