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Conventional wisdom is max out the nontaxable plans first.

I believe, though, that depending on what you plan to do with your taxable savings it may often be better to put your money there.

Consider this: if you're planning to use your taxable savings to buy or start a business, buy real estate to rent out, or take some other action that could greatly enhance your income over the long term, you may well find that you're better off in the long run saving the money where you can get at it.

On the other hand, if your intention is ultimately to use the money for consumption rather than generating income I'd say definitely go as far as you can with the nontaxable accounts first.

-- Mark
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