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Tax-Advantaged Order

Rule-of-thumb contribution priority from match % and HSA eligibility (educational).

About this calculator

This calculator produces an educational, rule-of-thumb contribution order across 401(k), HSA, and IRA accounts by scoring each on a simple point system and ranking them. The 401(k) score is 40 base points plus twice your employer match percentage (line 6, match * 2 + 40), so a bigger match raises the 401(k) score and nothing else changes it. The HSA score is 30 base points, plus 35 more if you're eligible for an HSA-eligible high-deductible health plan (line 7) -- HSA eligibility is the only thing that moves this score.

The IRA score is a flat 25 points always, regardless of match percentage or HSA eligibility (line 8) -- it never changes, serving as a fixed baseline the other two scores are compared against. Suggested Order then ranks whichever score is highest first: at a typical match (50%) the 401(k) score (140) beats the HSA score, giving "401(k) match -> HSA -> IRA -> taxable," but at a very low or zero match, an HSA-eligible person's HSA score (65) can exceed the 401(k) score (40), flipping the suggested order to put HSA first. This is a simplified educational heuristic -- it does not model actual tax savings, contribution limits, employer vesting schedules, or your marginal tax bracket, and shouldn't replace a real financial plan.

Inputs

Results

Rule-of-thumb order

401(k) match → HSA → IRA → taxable

401(k) score140
HSA score65
IRA score25
How to Use This Calculator
  1. Enter the employer match percentage on your 401(k) — always contribute enough to capture the full match first.
  2. Indicate whether you have access to an HSA-eligible high-deductible health plan.
  3. Review the suggested contribution order: 1) 401(k) up to match, 2) HSA if eligible, 3) IRA, 4) max 401(k), 5) taxable brokerage.
  4. Use the priority scores to understand the tax advantage ranking of each account type.
  5. This order maximizes tax efficiency by prioritizing free money (match), then tax-free accounts (HSA, Roth IRA), then tax-deferred.

What each input means

Employer match %
Match on first X% of salary (enter match percentage).
HSA-eligible HDHP?
Whether you can contribute to a Health Savings Account.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    Employer match % = 50, HSA-eligible HDHP? = 1 = 2 input(s) provided
  2. Calculate Rule-of-thumb order
    401(k) match → HSA → IRA → taxable = 401(k) match → HSA → IRA → taxable
  3. Calculate 401(k) score
    401(k) score = match * 2 + 40
    140 = 140
  4. Calculate HSA score
    HSA score = hsa * 35 + 30
    65 = 65

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.

Frequently Asked Questions

What raises my 401(k) priority score?

Only your employer match percentage. The 401(k) score is 40 base points plus twice the match percentage (matchPct * 2 + 40), so a 25% match scores 90 and a 100% match scores 240. HSA eligibility has no effect on this score at all -- it's driven entirely by the match percentage you enter.

Why doesn't my employer match percentage change my HSA or IRA score?

Because those two scores are computed from different inputs entirely. The HSA score (hsa * 35 + 30) only responds to whether you're HSA-eligible, and the IRA score is a hardcoded 25 regardless of any input. Employer match percentage has zero effect on either -- it only feeds the 401(k) score.

Can the suggested order change if my employer match is low?

Yes. The 401(k) score (matchPct * 2 + 40) starts at 40 with no match at all, while an HSA-eligible person's HSA score is 65. Since the calculator ranks by whichever score is highest, a low or zero employer match combined with HSA eligibility can push HSA ahead of the 401(k) in the suggested order -- match percentage isn't just a tiebreaker, it can change the recommendation entirely.

Why is the IRA score always 25 no matter what I enter?

The IRA score is hardcoded as a flat 25 points in the engine (scoreIra = 25) and never reads either input, so it acts as a fixed reference point the 401(k) and HSA scores are measured against rather than a value that responds to your situation. Both employer match percentage and HSA eligibility leave it completely unchanged.

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