Most people think of retirement planning as a choice between a 401(k) and an IRA and then call it a day. But what if you’re leaving thousands of dollars on the table because you didn’t know there were more options? The truth is that the U.S. tax code and retirement system offer multiple accounts with little-known advantages. Yet most Americans either ignore them or never learn how to use them to their full potential.
That’s not entirely your fault. These perks are rarely taught in school, HR often glosses over them, and financial advisors don’t always mention the more nuanced tools unless you ask. But these overlooked accounts can provide serious tax advantages, flexible withdrawal options, and long-term security that might change your entire retirement trajectory.
Here are 7 retirement accounts with perks most people don’t take advantage of—plus how to make them work for you.
Retirement Accounts For Everyone
1. Health Savings Accounts (HSAs): A Triple Tax Win
Most people think of an HSA as just a way to pay for prescriptions or doctor visits. But if used strategically, an HSA can be one of the most powerful retirement vehicles available, especially if you leave the money untouched until retirement.
Here’s why: Contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. That’s a triple tax advantage you won’t find in any other account. Once you hit age 65, you can even withdraw funds for non-medical expenses without penalty (though you’ll owe income tax, like a traditional IRA). That makes your HSA a hybrid of a retirement account and a healthcare safety net.
If you’re enrolled in a high-deductible health plan (HDHP), maximizing your HSA contributions each year can provide long-term benefits that extend well beyond your current doctor’s bills.
2. Solo 401(k): A Business Owner’s Secret Weapon
If you freelance, consult, or run a side hustle, you may qualify for a Solo 401(k). Most people think this account is only for full-time entrepreneurs, but anyone who earns self-employment income, even part-time, can use it.
The perk? You can contribute as both the employee and the employer. This allows you to stash away significantly more than in a standard 401(k) or IRA. In 2025, that’s up to $69,000 annually if you’re under 50 or $76,500 if you’re 50 or older (including catch-up contributions).
Solo 401(k)s also allow Roth contributions and may offer loan options. If you have a lucrative side gig, this account can accelerate your retirement savings faster than you’d expect.
3. Roth 401(k): Tax-Free Growth with Higher Limits
While Roth IRAs get a lot of attention, Roth 401(k)s are often overlooked even though they allow for much higher contribution limits.
With a Roth 401(k), you contribute after-tax dollars (just like a Roth IRA), but you get the benefit of the 401(k)’s annual contribution limit—$23,000 in 2025 if you’re under 50 and $30,500 if you’re 50 or older. This allows you to lock in tax-free growth and tax-free withdrawals later on without the income restrictions that apply to Roth IRAs.
Many employers now offer this option, but few employees use it. If you believe your tax rate will be higher in retirement or just want more flexibility later on, the Roth 401(k) deserves a second look.
4. 457(b) Plans: The Early Withdrawal Loophole
If you work for a state or local government or certain nonprofits, you may have access to a 457(b) plan. While it sounds like a regular 401(k), it comes with a unique perk: you can withdraw the funds penalty-free before age 59½.
That’s a huge advantage if you plan to retire early or want to bridge the gap between quitting work and accessing Social Security. Unlike 401(k)s or IRAs, there’s no early withdrawal penalty. Just regular income tax.
Many public employees don’t take full advantage of this plan or don’t realize they can contribute to both a 403(b) and a 457(b) simultaneously, effectively doubling their retirement savings potential.
5. SEP IRA: Simple, But Overpowered
For freelancers and small business owners without full-time employees, the SEP IRA offers a simple setup with major benefits. Contributions are tax-deductible, and the annual limits are generous (up to 25% of your net earnings, with a maximum of $69,000 in 2025).
It’s easier to set up than a Solo 401(k), requires less paperwork, and can be a smart option for side hustlers or part-time entrepreneurs. But here’s the key: most people never think to open one just because their business income isn’t huge.
Even if your freelance income is only a few thousand dollars per year, putting it into a SEP IRA could reduce your taxable income and grow tax-deferred. Over time, that small advantage can turn into a big retirement boost.
6. Spousal IRA: Retirement Savings for a Non-Working Partner
Many couples overlook the fact that a non-working or low-income spouse can still contribute to an IRA as long as the other partner has earned income.
Known as a Spousal IRA, this account can be either Roth or traditional and allows a couple to effectively double their IRA contributions. In 2025, that’s up to $7,000 per spouse (or $8,000 each if over 50), even if one partner doesn’t earn any income.
This is especially valuable for couples where one parent stays home with kids or works part-time. It keeps retirement savings growing for both partners and helps prevent financial imbalance down the road.
7. After-Tax 401(k) Contributions: Mega Backdoor Roth Potential
This is one of the most underutilized retirement moves, partly because it sounds complicated. But if your employer allows after-tax contributions to your 401(k) plan, you might be able to contribute far more than the standard limits and then roll that money into a Roth IRA.
It’s called the Mega Backdoor Roth, and while it takes some paperwork and understanding of your plan’s rules, it can allow high earners to stash away up to $46,000 more per year into a tax-advantaged account.
Most people don’t even know this is possible. But for those who do, it’s one of the fastest ways to turbocharge tax-free retirement savings, especially if you’ve already maxed out traditional and Roth options.
Don’t Let Good Accounts Go to Waste
The standard advice of “get the 401(k) match and open an IRA” is just the tip of the iceberg. If you want to retire with more freedom, flexibility, and financial power, you need to go deeper. These seven accounts offer lesser-known perks that could give you an edge most people never tap into.
The good news? Most of these options aren’t limited to the wealthy. With the right knowledge, even modest earners can take advantage of them and potentially retire with a lot more than they thought possible.
Which of these accounts surprised you most, and which one will you look into next?
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