Author Topic: Newbie investor: other tax-exempt accounts beyond IRA?  (Read 1253 times)

PinkFrugalRunner

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Newbie investor: other tax-exempt accounts beyond IRA?
« on: January 01, 2015, 03:16:19 PM »
I'm a newbie worker and investor in my early 20s. I maxed out a Roth IRA contribution for this year with savings from a summer job; I start full-time work later this year after finishing grad school. After reading the advice on MMM and a couple of Bogle books, I've put most of my additional savings into VTSAX, in a regular brokerage account. My question here is, are there any other non-taxable accounts I should be opening to invest with? I know you can't add a regular IRA to the Roth (I chose a Roth because my income from just a summer was low enough). Thanks!

matchewed

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Re: Newbie investor: other tax-exempt accounts beyond IRA?
« Reply #1 on: January 01, 2015, 03:31:17 PM »
401k and IRAs are the big two. One is through work usually and the other from your own individual initiative. Try to max out the tax deferred accounts is the general rule as when you are working full time your income will be higher than when you're FIRE. This is subject to individual circumstances.

MDM

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Re: Newbie investor: other tax-exempt accounts beyond IRA?
« Reply #2 on: January 01, 2015, 03:33:36 PM »
When you start full time work, check with your employer about their 401k plan and contribute the $18K max if at all possible.

Also, consider a High Deductible Health Plan (HDHP) which would then allow you to invest in a Health Savings Account (HSA).

See http://www.madfientist.com/ultimate-retirement-account/ and links therein for more details.

Good luck!

PinkFrugalRunner

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Re: Newbie investor: other tax-exempt accounts beyond IRA?
« Reply #3 on: January 01, 2015, 04:02:02 PM »
Great, thank you! I guess for now, the additional should go into a taxable investment account. Don't want to let it just sit there...