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Stupid question So I have a Roth IRA through e trade, I have a weekly contribution that goes in automatically from my paycheck, whenever I have enough in there, I buy another VOO. Being that you can only contribute $7000 per year to a Roth IRA, what’s the next best way to purchase more stocks?
Not a stupid question at all — this is exactly the right thing to think about.
Once you've maxed your Roth IRA ($7,000/year), the next best accounts to buy more stocks in are:
| Account | Tax Benefit | Best For |
|---|---|---|
| 401(k) / 403(b) | Pre-tax contributions, tax-deferred growth | If your employer offers one — especially with a match |
| HSA (if eligible) | Triple tax-free (contribute, grow, withdraw for medical) | Best tax deal available if you have a high-deductible health plan |
| Taxable Brokerage | No contribution limits, no restrictions | Most flexible — buy VOO or anything else, anytime |
The typical order of priority:
A taxable brokerage account (E*TRADE already offers one) is the most straightforward next step — you can buy VOO there too, with no contribution cap. You'll owe taxes on dividends and capital gains, but long-term gains are taxed at a lower rate (0%, 15%, or 20% depending on income).
Want help thinking through which account makes the most sense for your situation?