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Q: Are some savings vehicles better than others? What is the most tax-efficient way to save for retirement?

A: The good news for retirement savers is that they have at their disposal an array of savings account types, each with its own contribution limit and tax treatment. Properly utilized, the right combination of these accounts allows a substantial amount of tax-favored retirement savings. The downside is that optimizing savings can seem complex and confusing, which may cause some savers to tune out or fail to take full advantage of what’s available to them.

The table below includes the retirement savings accounts available to most people and the order in which we suggest they use them to maximize their tax-favored savings. Of course, everyone’s circumstances are different, so please consult your financial and tax advisors to make sure your strategy is appropriate for your unique financial situation.

If you have a question for the VESTED team, we’d love to hear from you and see if we can help. Please send your questions to us at VESTEDmagazine@captrustadvisors.com.