4. Max Out Your Tax-Advantaged Accounts




403(b) Accounts and Double Dipping

If you happen to work for the government or a tax-exempt non-profit, you might have a 403(b) plan instead of a 401(k). They're mostly identical to 401(k)s, though, and the same strategies apply.

An interesting situation arises if you change jobs midway through the year. There are limits to how much you can contribute to both a 401(k) and a 403(b), but those contribution “buckets” are unrelated. It's possible to max out both a 401(k) and a 403(b) sequentially if you move between the private and public sectors, saving a maximum of $37,000 pre-tax (plus your employers' matches).

That's a niche situation, and it's pretty hard to do, but if you've got a high savings rate and both jobs offer good salaries, it's possible!

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