401(k), HSA & IRA Calculator
Compare where your next retirement dollar may work hardest: employer match, HSA tax advantages, Roth tax-free growth, or Traditional tax savings.
Your retirement setup
Use rough tax rates if you do not know the exact number. The goal is account priority, not tax filing precision.
Suggested first move
401(k) match first
Capture the employer match before comparing HSA, Roth, and Traditional dollars.
Account comparison
Plain-English order
Match → HSA → Roth/Traditional
If your employer offers a match, that is usually the first place to contribute.
Then compare Roth vs Traditional based on whether your tax rate is likely higher now or later.
Decision checkpoints
Use the account for its job
How to choose between a 401(k), HSA, Roth IRA, and Traditional IRA
The first decision is usually simple: if your employer offers a 401(k) match, try to capture it before anything else. A match is not a market return. It is extra compensation tied to your contribution. Skipping it can mean leaving part of your pay package unused.
After the match, the Roth versus Traditional question is mostly about taxes. Roth contributions use after-tax dollars and qualified withdrawals can be tax-free. Traditional IRA and Traditional 401(k) contributions may reduce taxable income today, but withdrawals are generally taxable later.
Example: when the match comes first
Suppose you earn $85,000 and your employer matches 4% of pay. That is about $3,400 of possible employer money each year. If you can contribute enough to receive the full match, the match often beats choosing an IRA first because the account gets extra dollars before investment returns even start.
After that match is captured, the next dollar becomes a different decision. If you are HSA eligible and can pay current medical costs from cash flow, the HSA may deserve the next look because it can combine an upfront tax benefit, payroll-tax savings, tax-deferred growth, and tax-free qualified medical withdrawals.
Example: when Roth can win
A 28-year-old earning a moderate income may prefer Roth contributions if today's tax rate feels manageable and retirement income could be similar or higher. In that case, paying tax now can buy future flexibility. Roth money can be useful for managing retirement withdrawals because qualified distributions do not add taxable income.
When Roth can look better
Roth can be attractive when you are early in your career, your current tax rate is modest, or you expect retirement tax rates to be similar or higher. It can also give flexibility because tax-free retirement money is easier to plan around.
When Traditional can look better
Traditional contributions can be useful when your current tax rate is high and you expect a lower tax rate in retirement. The current-year tax savings can improve cash flow, reduce taxable income, or be reinvested if you have the discipline to save the refund.
Example: when Traditional can win
A higher earner who expects a lower retirement tax rate may prefer Traditional contributions. For example, if a contribution saves 32 cents of tax today and retirement withdrawals are expected to be taxed around 22%, the tax timing may create a meaningful advantage. The important part is what happens to the tax savings: if it is spent, the Traditional advantage can shrink quickly.
Where an HSA fits
If you are eligible, an HSA can be powerful because contributions may reduce taxable income, invested growth can compound, and qualified medical withdrawals can be tax-free. It often belongs after the employer match and before extra taxable investing, especially if you can afford to leave some HSA dollars invested.
A practical contribution order
A simple order for many people is: get the full 401(k) match, consider an HSA if eligible, choose Roth or Traditional based on tax rates, then add more to the workplace plan or taxable investing. This is not a rule for everyone, but it gives the calculator a realistic decision path instead of treating every account as equal.
Questions to ask before choosing
- Does your employer match contributions, and how much must you contribute to get all of it?
- Are you HSA eligible, and can you keep enough cash outside the HSA for medical bills?
- Is your tax rate likely higher now or later?
- Do you need retirement flexibility, current cash-flow relief, or both?
- Are income limits, plan rules, or fees changing the real answer?
Common mistakes
- Skipping the employer match while funding another account first.
- Comparing Roth and Traditional without considering tax rates.
- Forgetting income limits, plan rules, and annual contribution limits.
- Spending the Traditional tax savings instead of investing it.
- Using the HSA for every small bill immediately when long-term medical investing is the goal.
Source notes
This calculator uses simplified retirement-account math for education. It does not check IRS income limits, HSA eligibility, catch-up eligibility, nondeductible IRA rules, plan-specific fees, vesting schedules, or state taxes. Verify current rules and your employer plan documents before making contributions.