My preference is to change the order from Ringfinger's ordering.1. max 401(k) or 403(b)2. traditional IRA (if AGI permits)3. Roth IRA4. Possibly other tax deferred accounts such as annuity accounts - this really depends upon your situation and should be considered closely before jumping in.5. taxable accountI prefer to max out my 401(k) because it gives you a lot of bang for the short term buck even if you go beyond the matching percentage. Every dollar that goes into a 401(k) reduces your AGI (and taxable income) dollar for dollar. So you get to save immediate tax dollars that could then be used to fund a traditional or Roth IRA. Almost like a one-two punch. My general philosophy is to delay paying any tax as long as possible, so I strive to maximize vehicles which defer tax in the current tax year first. The other vehicles fall into place after that.Regards,LooseChange
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