Where to Save for Retirement First

A common order

• 1. Save enough in your workplace plan to get the full employer match.
• 2. Pay off high-interest debt such as credit cards.
• 3. Build an emergency fund of about 3–6 months of expenses.
• 4. Fund a health savings account (HSA) if you have a qualifying high-deductible health plan.
• 5. Contribute to a Roth or traditional IRA.
• 6. Go back and raise your 401(k) toward the yearly limit.
• 7. Invest in a regular taxable brokerage account.

Why this order

A match is an immediate return you cannot get anywhere else. HSAs can be tax-free going in, growing, and coming out for medical costs. IRAs often have lower fees and more investment choices than workplace plans.

Roth or traditional?

Within each account type, choose Roth when you expect a higher tax rate later and traditional when you expect a lower one. Many people use both so they can manage taxes in retirement. The Roth vs traditional calculator compares the two with your numbers.