Every tax-advantaged account.
Compared in one table.
Compare contribution limits, tax treatments, and rules for ten U.S. tax-advantaged accounts.
This page covers personal finance fundamentals that apply regardless of your view on Bitcoin or fiat currencyfiat currencyMoney declared legal tender by a government, not backed by a physical commodity. Its value rests on trust in the issuing government.Full definition.
This page covers US-specific accounts and tax law. Outside the US? The priority order is the same, the account names differ (ISAIndividual Savings Account (ISA)A UK tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition in the UK, TFSATax-Free Savings Account (TFSA)A Canadian tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition/RRSPRegistered Retirement Savings Plan (RRSP)A Canadian tax-deferred retirement account; contributions reduce taxable income and growth is tax-deferred until withdrawal.Full definition in Canada, Super in Australia, etc.).
Tax-year figures. Limits, brackets and thresholds on this page are for the tax year named next to them. They change every year.
This page compares all ten accounts in one table and gives the fill order. For which of the less-common accounts fits your work situation and its own deep-dive, see Accounts.
Not every account is right for every person. But for almost everyone: 401(k) up to the employer matchemployer matchAn employer contribution linked to qualifying employee contributions under a plan formula. Eligibility, vesting and plan terms determine what you receive and keep. The match ratio is not an annual investment return, and the invested balance can fall.Full definition first (free money), then HSAHealth Savings Account (HSA)A health savings account available only when eligibility requirements are met. Federal tax benefits depend on contribution limits and qualified medical expenses. Health coverage, other coverage and Medicare enrollment can affect eligibility; state tax treatment can differ.Full definition if eligible (triple tax advantage), then Roth IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition (tax-free growth), then 401(k) to the annual cap, then 529 if you have kids heading to college, then a taxable brokerage with VTI and a Bitcoin sleeve. The details for each account follow. All 2026 limits are from IRS publications, verify with IRS.gov before making actual contributions.
Section 1 · The comparison table
All limits are 2026 figures per IRS publications[1]. Income phase-outs are approximate; check the current IRS publications before relying on edge cases.
| ACCOUNT | 2026 LIMIT | TAX TREATMENT | INCOME LIMIT? | BEST FOR |
|---|---|---|---|---|
| Roth IRA | $7,500 ($8,600 if 50+) | post-tax in, tax-free forever | 2026 MAGI phase-out: $153,000–$168,000 single/HOH; $242,000–$252,000 MFJ. Other filing statuses have different rules.[2] | Everyone who qualifies, especially young earners and Bitcoin holders |
| Traditional IRA | $7,500 ($8,600 if 50+) | pre-tax in, taxed on withdrawal | deductibility phases out with workplace plan | High-income earners expecting lower retirement bracket |
| 401(k) Traditional | $24,500 ($32.5K if 50+) | pre-tax in, taxed on withdrawal | none | Almost everyone, free employer match first |
| 401(k) Roth | $24,500 ($32.5K if 50+) | post-tax in, tax-free forever | none | High contribution limit + Roth growth, when your plan offers it |
| Solo 401(k) | $72,000 combined | pre-tax or Roth, both options | none (self-employment income only) | Self-employed, highest contribution vehicle available |
| SEP-IRA | 20% of net SE income after half of SE tax, $72K cap | pre-tax in, taxed on withdrawal | none | Self-employed who want zero paperwork |
| SIMPLE IRA | $17,000 ($21K if 50+) | pre-tax in, taxed on withdrawal | none | Small-business employees |
| HSA | $4,400 self / $8,750 family | pre-tax in, tax-free growth, tax-free for medical | HDHPHigh-Deductible Health Plan (HDHP)A health-plan category with statutory deductible and out-of-pocket rules. HSA eligibility also depends on other conditions. Special 2026 rules cover qualifying bronze and catastrophic plans; verify the plan and your own eligibility rather than relying on its deductible alone.Full definition enrollment required | HDHP-enrolled, the single best account in the U.S. tax code |
| 529 | state-specific lifetime cap; $19,000 gift tax exclusion | post-tax in, tax-free for education | none (state tax deduction varies) | Parents with a reasonable probability of college expenses |
| 457(b) | $24,500 ($32.5K if 50+) | pre-tax in, taxed on withdrawal | government/nonprofit employees only | Public-sector workers, no 10% early withdrawal penalty |
All 2026 figures are subject to IRS revision. See irs.gov/retirement-plans and Publication 590-A for current limits before contributing.
Section 2 · Priority order for most people
There is a correct order to fill these, for most situations. Not opinion, math.
- 1 · 401(k) to the matchfull matchIf the employer matches: a 50–100% instant return on the matched portion.
- 2 · HSA, if on an HDHP$4,400/yr selfFamily coverage allows $8,750/yr. Triple tax advantage.
- 3 · Roth IRA$7,500/yrIf under the income phase‑out: tax-free growth forever.
- 4 · 401(k) to the cap$24,500/yrSame plan as row 1, filled to the cap.
- 5 · 529, if kidscollege costsExpected costs, within a state-set lifetime cap. Tax-free growth for qualified education.
- 6 · Taxable brokerageno limitEverything above the caps. Long-term capital gains treatment after one year.
If your employer matches contributions, contribute enough to capture the full match. This is a 50–100% instant return on the matched portion, free money. There is almost no situation where skipping the match makes sense.
The only triple-tax-advantaged account in U.S. law. Pre-tax contribution, tax-free growth, tax-free withdrawal for medical expenses. After 65, HSA behaves like a Traditional IRA for non-medical withdrawals. See HSA deep dive.
$7,500 per year of tax-free growth forever. If you're under the income phase-out, max this before doing anything else after the match and HSA. See Roth IRA guide.
$24,500 limit for 2026. Once the Roth IRA is full, come back here and fill the 401(k) to the full amount if you have the cash flowcash flowMoney coming in minus money going out over a month or year. A positive number means you earn more than you spend; negative means the opposite.Full definition.
If you have children and expect college costs, fund a 529. Some states give tax deductions; all states give tax-free growth for qualified education expenses. See 529 vs Roth IRA for College Savings.
Everything above the annual caps goes here. VTI, FSKAX, or equivalent total-market index fund, with a meaningful Bitcoin allocation. Long-term capital gainscapital gainsThe profit from selling an asset for more than you paid for it. Taxed differently depending on how long you held the asset. treatment after one year. No contribution limit.
Section 3 · The Bitcoin-in-Roth play
Spot Bitcoin ETFsExchange-Traded Fund (ETF)A basket of investments (stocks, bonds, or Bitcoin) that trades on a stock exchange like a single share. (FBTC, IBIT) are available inside Roth IRAs at most major brokerages. This is the most tax-efficient legal structure for long-term Bitcoin investing in the United States.
- Bitcoin goes up 10x over 30 years: in a taxable account you owe capital gains on the difference when you sell.
- Same 10x inside a Roth IRA: you owe $0 in federal income tax on withdrawal after age 59.5.
Fidelity holds the underlying Bitcoin for FBTC in self-custody[3], the only major issuer that does. If you are using an ETF as Roth-IRA Bitcoin exposure, FBTC is the pick on custody grounds. See spot ETFs for the full rundown.
Account selection is boring and it matters enormously. The priority order above costs you nothing and captures ~$250K+ in lifetime value for a median earner vs sloppy account selection. Verify the 2026 limits at IRS.gov before making actual contributions. The details matter; the order rarely changes.
Where to go from here
Sources
Bracketed numbers in the text link to these sources. Figures, rates and rules change: check each source’s date before acting on it.
- Internal Revenue Service. "Retirement Plans" hub · irs.gov/retirement-plans. Annual contribution limits updated in November for the following tax year. 2026 figures are per the IRS Notice issued late 2025. ↩
- Internal Revenue Service, 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 ↩
- Fidelity Wise Origin Bitcoin Fund (FBTC) prospectus and S-1 filings · sec.gov. Fidelity Digital Asset Services LLC acts as custodian. ↩
- IRS Publication 590-A (Contributions to IRAs) · irs.gov/pub/irs-pdf/p590a.pdf.
- IRS Publication 969 (HSAs and Other Tax-Favored Health Plans) · irs.gov/pub/irs-pdf/p969.pdf.
- IRS Section 529 Qualified Tuition Programs · irs.gov.
Last updated . Not financial advice. Tax rules change every year, always verify current limits at IRS.gov before contributing. Disclosures · How pages are reviewed