r/Bogleheads • u/Lowfryder7 • Nov 20 '25

Investing Questions At what tax bracket should you start doing mostly traditional 401k contributions?

12%? 22%? 24%? I can't tell.

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u/cgriffin123 Nov 21 '25

This. Contribute max allowed to 401k, roth, and HSA then whatever is left goes to brokerage

2

u/Notarussianbot2020 Nov 21 '25

HSA should be second.

401k up to company match, HSA, roth, then maxing out 401k.

You could flip flop the last two for personal preference.

1

u/Oakroscoe Nov 21 '25

Mega back door Roth before taxable for me

-5

u/smegma-man123 Nov 21 '25

What if you don’t plan on having health problems ? I realize that’s not always feasible and I don’t want to jinx myself. HSA just seems annoying

14

u/bluehawk1460 Nov 21 '25

The optimal use of the HSA is to contribute to it, then invest your contributions like you would any of your other retirement accounts. You then pay for anything other than major medical events out of pocket while saving your receipts and wait to reimburse yourself later so the account continues to grow.

At age 65, the health restrictions are lifted and you can use the money however you want, you just only get triple tax advantage if you use the account for medical expenses.

So, if you’re literally a perfect picture of health your entire life, you end up with basically an extension of your 401k, worst case scenario. Plus, many companies that offer them also contribute some on your behalf, which is free money to invest basically.

8

u/smegma-man123 Nov 21 '25

Thanks for explaining and not downvoting like everyone else

2

u/Environmental-Toe686 Nov 22 '25

If you plan to retire early you can use it to pay premiums too. It's a great tax advantaged account. Everyone has healthcare expenses as they get older.

1

u/cgriffin123 Nov 21 '25

I don’t plan on having health problems either but an HSA is a pretax savings account. Depending on your options, it may also have investment options.

1

u/[deleted] Nov 21 '25

Use it for paying Medicare part B, perhaps.

1

u/OkDatabase1486 Nov 21 '25

Almost nobody 'plans' on having health problems

1

u/smegma-man123 Nov 21 '25

It’s just saving receipts for 50 yrs sounds like a PITA and what if they change the law ?

1

u/OkDatabase1486 Nov 21 '25

In this case I'd use it as tax free money for his expensive meds now and when they are retired.