9 Tax-Advantaged Investments & Accounts to Build Wealth

While your entire investment strategy should not revolve around tax advantages, people who pay attention to these benefits can save themselves a significant amount of money.

You can choose to keep the money in their 401(k) plan, transfer it to a new employer’s plan, or roll it into a Traditional IRA without paying penalties or fees.

1. Traditional 401(k) Plans

Employees fund these accounts with tax-deferred contributions and accumulated earnings which do not go to shareholder dividends. 

2. 403(b) Plans & 457 Plans

A traditional Individual Retirement Account (IRA) is a tax-deferred investment account available through numerous brokerages and investing services. 

3. Traditional IRA

The main difference between a traditional 401(k) and a Roth 401(k) is that a Roth 401(k) is tax-deferred rather than giving you a benefit the year you contribute.

4. Roth 401(k), 403(b), 457 Plans

A 529 savings plan acts as a tax-advantaged investment account helping your family save for education expenses.

5. 529 Plan

If you have an employer-sponsored account, your contributions are taken out of your paycheck before taxes. 

6. Health Savings Account 

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