WHERE SHOULD YOU SAVE FOR RETIREMENT AFTER A 401K?
FROM BALTIMORE WASHINGTON FINANCIAL ADVISORS
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Tyler Cunningham,
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Tessa Hall
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About This Episode
Tessa speaks with BWFA Financial Planner Tyler Cunningham about retirement savings strategy and why where you save can matter just as much as how much you save. They discuss the role of pre-tax accounts like 401(k) s, along with Roth and taxable accounts, and how each can impact your flexibility and tax efficiency in retirement, especially when deciding where to save for retirement after a 401(k). To better understand how your savings strategy fits into your broader financial plan, visit our Financial Planning page.
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Saving for retirement is important. However, many investors eventually ask a key question: where should you save for retirement after a 401(k)? The answer can have just as much impact as how much you save over time.
In this episode of Healthy, Wealthy & Wise, Tessa speaks with BWFA Financial Planner Tyler Cunningham about retirement savings strategy and why using multiple types of accounts can improve flexibility in the future. While many people focus on contributing to their 401(k), understanding where to save next can create more options when it comes time to use those savings.
Pre-tax accounts, such as a 401(k), offer immediate tax benefits. These contributions can reduce taxable income during working years. However, withdrawals in retirement are taxed as ordinary income. As a result, investors who only use pre-tax accounts may limit their flexibility later, which is why it is important to consider where to save for retirement beyond a 401(k).
That is where other account types come into play. Roth accounts allow for tax-free withdrawals in retirement, provided certain conditions are met. Taxable brokerage accounts offer additional flexibility, often with different tax treatment on gains. Together, these accounts create more opportunities to manage income and taxes over time.
The conversation also highlights why distribution strategy matters. When retirees draw from multiple account types, they may be able to better control their tax bracket. This becomes especially important for those who have built savings across different accounts after their 401(k).
Another key takeaway is that saving is only the first step. Building a thoughtful strategy across different account types can help support both short-term needs and long-term goals. Knowing where to save for retirement after a 401(k) can help investors make more informed decisions along the way.
Ultimately, a retirement savings strategy is about more than accumulation. With the right structure in place, investors can create flexibility, manage taxes, and feel more confident about how and where their savings will support them throughout retirement.