Thrive at Money

The 401k is not a wealth-building strategy. It's one tool in a larger sequence — and most high earners never learn what comes next.

Here's the account order worth knowing:

First, contribute to your 401k up to the employer match. That's an immediate 50-100% return. Always take it.

Next, if you have a high-deductible health plan, an HSA. Triple tax advantage — pre-tax contributions, tax-free growth, tax-free withdrawals for medical expenses. No other account does all three.

Then a Roth IRA — $7,000 limit in 2025, tax-free growth, tax-free withdrawals in retirement. If your income is above the limit, a Backdoor Roth is a legal workaround worth knowing about.

After that, back to your 401k up to the annual max ($23,500 in 2025).
Then a taxable brokerage account — no contribution limits, no age restrictions, full flexibility.

The 401k is where most people stop. The sequence beyond it is where wealth strategy actually starts.

Save this — the sequence matters.