Most individuals consider retirement planning as a alternative between a 401(okay) and an IRA after which name it a day. However what for those who’re leaving hundreds of {dollars} on the desk since you didn’t know there have been extra choices? The reality is that the U.S. tax code and retirement system supply a number of accounts with little-known benefits. But most People both ignore them or by no means learn to use them to their full potential.

That’s not fully your fault. These perks are not often taught in class, HR usually glosses over them, and monetary advisors don’t all the time point out the extra nuanced instruments until you ask. However these missed accounts can present severe tax benefits, versatile withdrawal choices, and long-term safety that may change your whole retirement trajectory.

Listed here are 7 retirement accounts with perks most individuals don’t reap the benefits of—plus find out how to make them be just right for you.

Retirement Accounts For Everybody

1. Well being Financial savings Accounts (HSAs): A Triple Tax Win

Most individuals consider an HSA as only a option to pay for prescriptions or physician visits. But when used strategically, an HSA may be one of the highly effective retirement autos obtainable, particularly for those who go away the cash untouched till retirement.

Right here’s why: Contributions are tax-deductible, the cash grows tax-free, and withdrawals for certified medical bills are additionally tax-free. That’s a triple tax benefit you gained’t discover in some other account. When you hit age 65, you may even withdraw funds for non-medical bills with out penalty (although you’ll owe earnings tax, like a standard IRA). That makes your HSA a hybrid of a retirement account and a healthcare security web.

In the event you’re enrolled in a high-deductible well being plan (HDHP), maximizing your HSA contributions every year can present long-term advantages that reach nicely past your present physician’s payments.

2. Solo 401(okay): A Enterprise Proprietor’s Secret Weapon

In the event you freelance, seek the advice of, or run a aspect hustle, chances are you’ll qualify for a Solo 401(okay). Most individuals suppose this account is just for full-time entrepreneurs, however anybody who earns self-employment earnings, even part-time, can use it.

The perk? You possibly can contribute as each the worker and the employer. This lets you stash away considerably greater than in a normal 401(okay) or IRA. In 2025, that’s as much as $69,000 yearly for those who’re below 50 or $76,500 for those who’re 50 or older (together with catch-up contributions).

Solo 401(okay)s additionally enable Roth contributions and should supply mortgage choices. In case you have a profitable aspect gig, this account can speed up your retirement financial savings quicker than you’d count on.

3. Roth 401(okay): Tax-Free Progress with Increased Limits

Whereas Roth IRAs get loads of consideration, Roth 401(okay)s are sometimes missed despite the fact that they permit for a lot greater contribution limits.

With a Roth 401(okay), you contribute after-tax {dollars} (identical to a Roth IRA), however you get the advantage of the 401(okay)’s annual contribution restrict—$23,000 in 2025 for those who’re below 50 and $30,500 for those who’re 50 or older. This lets you lock in tax-free progress and tax-free withdrawals afterward with out the earnings restrictions that apply to Roth IRAs.

Many employers now supply this feature, however few staff use it. In the event you consider your tax fee shall be greater in retirement or simply need extra flexibility afterward, the Roth 401(okay) deserves a re-assessment.

4. 457(b) Plans: The Early Withdrawal Loophole

In the event you work for a state or native authorities or sure nonprofits, you will have entry to a 457(b) plan. Whereas it seems like a daily 401(okay), it comes with a novel perk: you may withdraw the funds penalty-free earlier than age 59½.

That’s an enormous benefit for those who plan to retire early or wish to bridge the hole between quitting work and accessing Social Safety. In contrast to 401(okay)s or IRAs, there’s no early withdrawal penalty. Simply common earnings tax.

Many public staff don’t take full benefit of this plan or don’t understand they’ll contribute to each a 403(b) and a 457(b) concurrently, successfully doubling their retirement financial savings potential.

5. SEP IRA: Easy, However Overpowered

For freelancers and small enterprise house owners with out full-time staff, the SEP IRA presents a easy setup with main advantages. Contributions are tax-deductible, and the annual limits are beneficiant (as much as 25% of your web earnings, with a most of $69,000 in 2025).

It’s simpler to arrange than a Solo 401(okay), requires much less paperwork, and could be a sensible choice for aspect hustlers or part-time entrepreneurs. However right here’s the important thing: most individuals by no means suppose to open one simply because their enterprise earnings isn’t enormous.

Even when your freelance earnings is only some thousand {dollars} per 12 months, placing it right into a SEP IRA might cut back your taxable earnings and develop tax-deferred. Over time, that small benefit can flip into a giant retirement increase.

6. Spousal IRA: Retirement Financial savings for a Non-Working Accomplice

Many {couples} overlook the truth that a non-working or low-income partner can nonetheless contribute to an IRA so long as the opposite accomplice has earned earnings.

Often called a Spousal IRA, this account may be both Roth or conventional and permits a pair to successfully double their IRA contributions. In 2025, that’s as much as $7,000 per partner (or $8,000 every if over 50), even when one accomplice doesn’t earn any earnings.

That is particularly helpful for {couples} the place one dad or mum stays dwelling with youngsters or works part-time. It retains retirement financial savings rising for each companions and helps stop monetary imbalance down the street.

7. After-Tax 401(okay) Contributions: Mega Backdoor Roth Potential

This is without doubt one of the most underutilized retirement strikes, partly as a result of it sounds difficult. But when your employer permits after-tax contributions to your 401(okay) plan, you would possibly be capable of contribute excess of the usual limits after which roll that cash right into a Roth IRA.

It’s known as the Mega Backdoor Roth, and whereas it takes some paperwork and understanding of your plan’s guidelines, it may enable excessive earners to stash away as much as $46,000 extra per 12 months right into a tax-advantaged account.

Most individuals don’t even know that is doable. However for individuals who do, it’s one of many quickest methods to turbocharge tax-free retirement financial savings, particularly for those who’ve already maxed out conventional and Roth choices.

Don’t Let Good Accounts Go to Waste

The usual recommendation of “get the 401(okay) match and open an IRA” is simply the tip of the iceberg. If you wish to retire with extra freedom, flexibility, and monetary energy, you must go deeper. These seven accounts supply lesser-known perks that might provide you with an edge most individuals by no means faucet into.

The excellent news? Most of those choices aren’t restricted to the rich. With the precise information, even modest earners can reap the benefits of them and probably retire with much more than they thought doable.

Which of those accounts shocked you most, and which one will you look into subsequent?

Learn Extra:

11 Retirement Planning Hacks That Sound Unlawful (However Aren’t)

The right way to Save for Retirement With out Giving Up Your Life