So far in five months at my new job I've managed to save $4,600 spread about in my three savings accounts (401k @$2200, Roth IRA @$1100, and HSA@$1300). I'm thankful for this site in pointing me in the right direction regarding accounts and investment choices, without which I probably wouldn't even have that small amount. However, the end of the year is nigh, and thus the time for contributing to these accounts is running out. I only have so much money, and with the holidays coming my "extra" money won't be so "extra," being doled out in various ways to various people. Thankfully my debt is quite low, about $1100 total (no vehicle loans), $800 of which is interest free, no hair on fire there. My question is, if I were to be able to scrounge together 120 $10 workers by the end of the year ($1200), to which ditch should these fellows be assigned?
It doesn't amount to much in the grand scheme of things, but I most likely wouldn't max out everything at the end of next year either. I will be getting 2 nice raises next year and will be able to up my contributions, so knowing which account to prefer over the others is beneficial for next year as well. The help for this year is actually more important for next year when I have a larger amount to work with, and a fresh sheet.
My thinking is either:
a) Max out HSA and Roth as they are smaller, and try pouring everything I can into 401k.
b) Max ($17,500) 401k and try filling Roth and HSA as I go.
The reason for my (a) option is that I can pull out Roth original contributions any time I want. Being relatively young (28 years old) this kind of appeals to me in emergency situations and also future planning (house down payment). I'd like to have as much money available to me as possible.
The reason for (b) option is that I can roll my 401k into my Roth sometime in the future and actually have more in there than by simply contributing to the Roth to the max. This might be tremendously helpful in planning for the future. The only problem there is that there's quite a few limitations attached (can't roll over 401k till I leave job, 5 year waiting period for touching 401k contributions in Roth). This will take a lot of planning to carry out and could be tripped up by unplanned things, rewards are great though.
The current plan for next year is to max Roth (with help of half my tax return, about $1500), max HSA, and contribute $11,000 into 401k.
Thoughts, ideas, criticism?