I’m curious what everyone else does after hitting the limit on their Roth IRA contributions for the year. I usually max mine out early, contribute to a traditional 403b at work, keep some money in CDs for short-term needs, and dabble in crypto.
Got any tips?
I max out my Roth IRA right at the start of the year (usually the first week of January), then max out my HSA and 401k gradually through paycheck deductions over the year.
Farley said:
I max out my Roth IRA right at the start of the year (usually the first week of January), then max out my HSA and 401k gradually through paycheck deductions over the year.
Wait, there’s a max for a high-yield savings account? I might need to switch banks.
@Blair
HSA, not HYSA. HSA stands for Health Savings Account, which is linked to your health insurance.
Kiran said:
@Blair
HSA, not HYSA. HSA stands for Health Savings Account, which is linked to your health insurance.
Oops, totally read that wrong. Thanks for clarifying!
@Blair
FDIC insurance only covers up to $250k, so you usually don’t want to go over that amount in a single bank. But banks usually don’t set limits on deposits unless it’s for a special promo rate. Personally, I prefer a money market account at a brokerage since rates are often a bit better, although it can take an extra day to sell shares compared to a high-yield savings account.
Farley said:
I max out my Roth IRA right at the start of the year (usually the first week of January), then max out my HSA and 401k gradually through paycheck deductions over the year.
I do the same thing, and anything left after bills and expenses goes into a brokerage account, where I buy an S&P index fund. I keep my emergency fund in a high-yield savings account.
Farley said:
I max out my Roth IRA right at the start of the year (usually the first week of January), then max out my HSA and 401k gradually through paycheck deductions over the year.
It might be smarter to invest in your Roth IRA closer to the end of the tax year, like around April 15. Investing early in January is actually near the end of the fiscal year, so you might miss out on some growth.
DraftKings
Torrance said:
DraftKings
I like to “donate” to DraftKings too!
I just put money into a taxable investment account.
Once I’ve maxed everything out for the year, I put extra cash into a total stock market ETF in a taxable account.
I max out my Roth IRA, HSA, 401k, and then go to a regular investment account.
Have you seen the priority chart? For me, it’s all about doing these at the same time, not one after the other. Here’s my list:
I should probably start putting more into an HSA. Didn’t know about those until recently.
@Fay
Just a heads up, HSAs are only available if you have a high-deductible health plan, not just any insurance. So if you’re thinking about opening an HSA, make sure you’re eligible with the right type of insurance.
After maxing the Roth IRA, consider increasing your 403(b) contributions. You can put up to $23k in it if you’re under 50, and $30,500 if you’re over 50. Tax-deferred investments can really compound. The only reason to pick a taxable brokerage first is if you think you’ll be in a higher tax bracket at retirement than you are now.
Once everything’s maxed, I open a beer. 
But in all seriousness, I keep about 8 months of expenses in cash and put the rest into a brokerage account, dollar-cost averaging into the market.
I don’t have an HSA, so I just put a chunk into a taxable brokerage account.
VTI and VXUS in a taxable account. Also, a few krugerrands and some beanie babies for good measure!
I max out through a backdoor Roth on January 1 every year. Then, since I’m already maxing out everything else, I add more to my brokerage account and put some in a money market account for a future down payment fund.