My personal preference for "retirement" savings/investing. As you see I prioritize the HSA over IRA due to the extra immediate tax savings.
1. Company Sponsored Plan (401k/TSP): Contribute the % your organization will match. E.g. 5% each paycheck and then receive the match. My contributions go towards the Roth option while company match is in Traditional.
2. Health Savings Account (HSA): Equal contributions each pay period to max out the limit each year. I treat this as a retirement account and have it invested for that purpose. I have no doubt I'll have higher health costs/needs in the future… I also need to be better about organizing and saving receipts I currently pay with cash.
3. Roth IRA: I make the full contribution in January each year. Don't want to worry about dollar cost averaging and at this amount, lump sum just makes it easier. If needed too, I would contribute each month. Backdoor Roth if need to as all IRA is in Roth (no traditional).
4. CVLIP: I almost didn't list this b/c it might ignite too many comments. But cash value life insurance makes sense for me and we'll just leave it at that.
5. Combination: Extra funds then go Cash, Taxable Brokerage Account, and/or Company-Sponsored Plan. Each serves its own purpose and are important.
**To answer OP's dilemma, if it were "me"… I would simply keep maxing out my HSA and use the remaining amount to partially fund my Roth IRA.
1. Company Sponsored Plan (401k/TSP): Contribute the % your organization will match. E.g. 5% each paycheck and then receive the match. My contributions go towards the Roth option while company match is in Traditional.
2. Health Savings Account (HSA): Equal contributions each pay period to max out the limit each year. I treat this as a retirement account and have it invested for that purpose. I have no doubt I'll have higher health costs/needs in the future… I also need to be better about organizing and saving receipts I currently pay with cash.
3. Roth IRA: I make the full contribution in January each year. Don't want to worry about dollar cost averaging and at this amount, lump sum just makes it easier. If needed too, I would contribute each month. Backdoor Roth if need to as all IRA is in Roth (no traditional).
4. CVLIP: I almost didn't list this b/c it might ignite too many comments. But cash value life insurance makes sense for me and we'll just leave it at that.
5. Combination: Extra funds then go Cash, Taxable Brokerage Account, and/or Company-Sponsored Plan. Each serves its own purpose and are important.
**To answer OP's dilemma, if it were "me"… I would simply keep maxing out my HSA and use the remaining amount to partially fund my Roth IRA.
