401(k), IRA, or HSA? Here’s a hierarchy for retirement savings

If you have a fixed sum of money to invest every month or every year, which investment account type gives you the biggest bang for your buck? There are no one-size-fits-all answers, but this framework for retirement savings is a good starting point. 1: Invest enough in a 401(k)/other company retirement plan to earn matching contributions. Why: To take advantage of free money. Deprioritize if: Your 401(k) offers no matching contributions. In that case, proceed directly to No. 2. Even a lackluster match—say, 25 cents per dollar—is hard to beat by investing outside the plan, and it comes on top of any investment earnings. 2: Invest in an IRA. Why: Low costs, flexibility, and the ability to contribute to a Roth. Deprioritize if: Your company retirement plan features all the bells and whistles, including ultralow costs and a Roth option. Why choose an IRA over a 401(k)? IRAs often avoid administrative fees, and they offer an array of securities and a Roth option. But if your 401(k) has no administrative expenses, ultralow-cost investments, and a Roth option, you can make a full 401(k) contribution before moving to an IRA. 2a: Invest in a Spousal IRA. Why: Amass retirement savings for a…