Building Wealth
Lesson 3 of 43 min65 XP
Building Wealth
The order to fill tax-advantaged accounts
There's a near-universal priority list — and most people get it wrong.
Last reviewed: · Reviewed by the Money Scale editorial team
The standard priority order
- •1. 401(k) up to the full employer match — free money.
- •2. Pay off any debt above ~8% APR — guaranteed return.
- •3. Max your HSA if you have a high-deductible health plan — triple tax advantage.
- •4. Max your IRA (Roth or Traditional) — $7K/yr.
- •5. Continue 401(k) up to the annual max — $23,500/yr.
- •6. Taxable brokerage account — for anything beyond.
Triple
Tax advantage of an HSA
Pre-tax in, tax-free growth, tax-free out for medical. Best account in the tax code.
The HSA cheat code
After age 65, an HSA works like a Traditional IRA — withdraw for ANY reason, only pay income tax. Until then, save medical receipts and reimburse yourself decades later, tax-free.
Takeaway
Match → high-APR debt → HSA → IRA → max 401(k) → brokerage. Memorize that order; it'll guide a decade of decisions.
Quick check · 65 XP
What goes FIRST in the standard contribution priority order?