Choosing an Account Type

The main U.S. wrappers

Availability and rules differ by country; these are the common U.S. categories.

• Taxable brokerage account (U.S.): full flexibility; capital gains are generally taxed when realised by a sale, while interest, dividends and fund distributions are generally taxable in the year paid — rising value you have not sold is generally not taxed each year
• Traditional IRA / 401(k): contributions may reduce taxable income now, withdrawals taxed later
• Roth IRA / Roth 401(k): contributions taxed now, qualified withdrawals generally tax-free later
• Employer plans: often include matching contributions and a limited fund menu
• Education and health accounts: tax advantages tied to specific uses

Why order matters

Many investors prioritise an employer match first, because it is an immediate addition to contributed capital, then tax-advantaged accounts, then taxable accounts. The right order depends on your circumstances.

Not advice

Contribution limits, eligibility and rules change and differ by jurisdiction. Confirm current rules and consider a qualified professional for your own situation.