Stacey Chin, MA, CFP®, ChFC®, Chief Investment Officer and Private Wealth Advisor at Treehouse Wealth Advisors, was recently featured in a U.S. News & World Report article titled “How to Save in a 401(k) and IRA in the Same Year.”
The article explores strategies for maximizing retirement savings by contributing to both 401(k) plans and IRAs simultaneously. It covers contribution limits, income restrictions, tax benefits, and decision-making frameworks for workers looking to optimize their retirement planning approach.
Stacey clarified that workers can contribute to both accounts independently: “These contributions are independent of each other, so that you can contribute to the maximum allowed.” She noted that this strategy allows workers to defer income tax on substantial amounts—up to $41,750 for those aged 60-63 who qualify for enhanced catch-up contributions.
Regarding prioritization strategies, Stacey emphasized the importance of employer matching: “If your employer offers a match on 401(k) contributions, try to contribute at least enough to get the full match. This is essentially free money and can significantly increase your retirement savings.”
She also provided guidance on choosing between accounts based on investment options: “Often, a 401(k) has more limited investment options than an IRA. For greater transparency and control, an IRA may be a better option for saving. After leaving a job, rolling a 401(k) into an IRA may make more sense for many individuals.”
Treehouse Wealth Advisors is a fee-only wealth management firm based in the San Francisco Bay Area, serving innovators, legacy builders, and impact makers. The firm provides personalized financial planning, investment management, and wealth advisory services, helping clients navigate significant life changes while working toward fulfilling and meaningful lives.
