Retirement Savings

What’s Your Best Contribution Order?

September 13, 2019
Determining how to prioritize your contributions can help make the most of your savings opportunities.

Key Points

  • The order in which you contribute to your retirement accounts can help increase future spendable income.
  • Aim to contribute 15% of your salary, including employer contributions.
  • Always make sure you’re taking advantage of matching contributions if offered by your employer’s retirement plan.
  • Determine if Traditional or Roth contributions are best for your personal situation.

Retirement Contribution Order at a Glance

Note that the decision to fund an IRA or taxable account depends on your circumstances, including nonretirement financial goals. Deductibility of IRA contributions depends on participation in an employer-sponsored plan and IRS limits.

This material has been prepared by T. Rowe Price for general and educational purposes only. This material does not provide fiduciary recommendations concerning investments, nor is it intended to serve as the primary basis for investment decision-making. T. Rowe Price, its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this material.

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Next Steps:

  • Learn more about the differences between Traditional and Roth IRAs.
  • Visit to access the most recent IRS contribution and deduction limits for different types of retirement plans.