[WalterBright]

401k often comes with employer contributions, as well as your contribution is tax deductible. If you do only one, that's it.

The IRA and the HSA are also tax deductible.

Spend your health care expenses with the HSA, making them cheaper for you.

I'm not a tax accountant, and if you want accurate advice consult with a CPA.

[roland35]

The 401k limit doesn't include money your employers match - so if they contribute $10k you can still put in $22.5k (2023)

[ianai]

Yes and if you’re assuming that’s less than a quarter of the persons income then that’s an income north of 90k. That’s actually far above statistically important incomes even if it doesn’t sound like much to this crowd. Just looking to add some context.

And simply telling such people to go find better paying work is also clearly not going to work for everyone.

Context is important. I suppose I’d rather suggest that people be saving, sure, and doing everything they can to live below their means-knowing full well that’s still a high bar. Things like having roommates, always driving a paid off used car (10-20 years old), not having a car, etc. Manage the ego against hoping on the hedonic treadmill, as others pointed out.

A still better solution would be treating each other better and demanding it from our institutions and representatives. Doesn’t mean everyone should live like a king, but we can do better than the current.

[roland35]

I wasn't trying to make any larger point about income inequality - just saying that employer matches do not contribute to your individual 401k limits :)

[WalterBright]

America's poor live better than medieval kings.