Comprehensive Guide
Learn more in our Business & Tax Guide.
How it works
tax-advantaged account optimizer takes your inputs and produces step 1: 401k to match, step 2: max hsa, step 3: max ira, step 4: max 401k, total annual tax savings. Optimize contributions across 401K, IRA, HSA, and Roth to maximize tax savings and retirement wealth. You provide 5 inputs: Annual gross income (currency, in dollars) (default: 80000 dollars); Marginal tax rate (%) (percent, in percent) (default: 22 percent); Have employer 401K? (toggle) (default: "true"); Employer 401K match (%) (percent, in percent) (default: 6 percent); Have HSA-eligible health plan? (toggle) (default: "false"). The calculator returns 5 outputs: Step 1: 401K to match (the primary result); Step 2: Max HSA (a secondary output); Step 3: Max IRA (a secondary output); Step 4: Max 401K (a secondary output); Total annual tax savings (a secondary output). Business tax and finance calculations combine multiple moving parts — revenue, expenses, depreciation, tax brackets, and timing — in ways that make back-of-envelope estimates unreliable. This calculator handles the interaction of those variables precisely, so your business decisions rest on real arithmetic. The underlying formula: Tax savings = Contribution × Marginal rate. Employer match = instant 50–100% return. With the default values, step 1: 401k to match is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Tax savings = Contribution × Marginal rate. Employer match = instant 50–100% return.
Tips
- Step 1: Always get the full employer match — it is free money with 50–100% instant return.
- Step 2: HSA is the most tax-advantaged account available (triple tax benefit).
- Step 3: IRA gives you choice of Roth or Traditional.
- The total order: Match → HSA → IRA → 401K max → Taxable.
Frequently asked questions
What is the best order to fund retirement accounts?
1. 401K up to employer match (free money). 2. HSA if eligible (triple tax advantage). 3. Roth IRA ($7,000 limit). 4. Max 401K ($24,500 limit). 5. Taxable brokerage.
Can I contribute to both 401K and IRA?
Yes — you can contribute to both in the same year. The limits are separate: $23,500 for 401K and $7,000 for IRA (2025 limits). Total potential tax-advantaged savings: $30,500/year.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.