Tax-advantaged accounts: a field guide

The US tax code gives you a bunch of specialized accounts that shield certain money from taxes, each with different rules. Here's the whole landscape in one place.

Retirement: 401(k) / 403(b)

Employer-sponsored. Contribution limit $23,500 in 2026 (plus a $7,500 catch-up after 50). Money goes in pre-tax (or post-tax for Roth 401k), grows tax-deferred, taxed on withdrawal (or never, for Roth). Employer often matches contributions. 403(b) is the nonprofit/schools version — works nearly identically.

Retirement: Traditional and Roth IRA

Individual, not employer-tied. Contribution limit $7,000 in 2026 (plus $1,000 catch-up). Traditional is tax-deductible now, taxed on withdrawal. Roth is post-tax in, tax-free growth, tax-free out. Roth has income limits for direct contributions (~$150k single, ~$236k married in 2025); above that, use the backdoor.

Health: HSA

Requires a high-deductible health plan (HDHP). Contribution limit ~$4,300 individual / ~$8,550 family in 2025. Triple tax-advantaged: tax-free in, tax-free growth, tax-free out for medical expenses. The only account with all three. After age 65, can be used for anything (non-medical withdrawals taxed like a Traditional IRA).

Health: FSA

Different from HSA. Contribution limit ~$3,300 in 2025. Pre-tax in, pre-tax out for medical. But: 'use it or lose it' — money usually expires at year end (some plans allow a small rollover). Best for predictable medical expenses. Not a retirement account.

Education: 529 plans

State-sponsored accounts for educational expenses. Contributions are after-tax federally, but many states give a tax deduction on state income tax. Growth is tax-free if used for qualified education (tuition, room, board, books, K-12 up to $10k/year). Leftover funds (since 2024) can roll over to a Roth IRA for the beneficiary, subject to limits.

Other: I-bonds, Series EE bonds, municipal bonds

Not 'accounts' in the same sense, but tax-advantaged instruments. I-bonds track inflation and are state-tax-free. Municipal bonds pay interest that's usually federal-tax-free and sometimes state-tax-free. Useful for high earners in high-tax states looking to shelter taxable income.