What is the 2024 IRA contribution limit?

The 2024 IRA contribution limit is $7,000 ($8,000 if you are 50 or older). This limit applies to Traditional and Roth IRAs combined. 401(k) contributions have a separate limit of $23,000 ($30,500 for age 50+).

What is the HSA contribution limit for 2024?

The 2024 HSA limit is $4,150 for self-only HDHP coverage and $8,300 for family coverage. An additional $1,000 catch-up contribution is allowed for those 55 and older. You must be enrolled in a qualifying high-deductible health plan to contribute.

Is a Roth IRA better than a Traditional IRA?

Roth is better if you expect your tax rate to be higher in retirement. Traditional is better if you expect a lower tax rate in retirement. Diversifying across both types hedges against future tax law changes.

💎Tax Account Comparison

Compare annual tax savings from Traditional IRA, 401(k), and HSA contributions at your marginal tax rate.

Marginal Federal Tax Rate (%)

Traditional IRA / 401(k) Annual Contribution ($, max $7,000 IRA / $23,000 401k)

HSA Annual Contribution ($, max $4,150 individual / $8,300 family)

Tax Account Comparison — How It Works

The US offers several tax-advantaged accounts for retirement and healthcare savings. Traditional IRAs and 401(k)s reduce your taxable income now (pre-tax). Roth accounts offer tax-free growth and withdrawals later. HSAs provide a triple tax benefit — deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.

This tool calculates your immediate tax savings from pre-tax contributions. Roth contributions do not provide an upfront deduction, but their tax-free growth can be more valuable long-term depending on your expected future tax rate.

Frequently Asked Questions

Should I choose Traditional or Roth?

Traditional is generally better if you expect to be in a lower tax bracket in retirement. Roth is better if you expect your tax rate to be higher in retirement. Many advisors recommend diversifying across both account types to hedge against future tax uncertainty.

What is the HSA triple tax benefit?

HSA contributions are pre-tax (or deductible), growth is tax-free, and withdrawals for qualified medical expenses are tax-free. After age 65, non-medical withdrawals are taxed like a Traditional IRA — no penalty. It's widely considered the most tax-efficient account available.

Can I contribute to both a 401(k) and an IRA?

Yes. You can contribute to a 401(k) and a Traditional or Roth IRA in the same year. However, the deductibility of Traditional IRA contributions phases out at higher incomes if you are covered by a workplace retirement plan.

Tax Account Comparison — How It Works

Frequently Asked Questions

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