business and money saving concept.

How You Can Benefit From Tax-Advantaged Accounts

How are your New Year’s Resolutions coming along? When the calendar flipped to 2023, you may have started a new gym routine, a new eating plan, or set a new savings goal. If you’re planning to boost your savings this year, contributing to tax-advantaged accounts can be a great place to start.

What are Tax-Advantaged Accounts?

There are different types of tax-advantaged accounts, but they all share a common perk: they provide tax benefits in exchange for savings contributions. There are three types of tax-advantaged accounts: 

  • Tax-deferred accounts, which are funded with pre-tax income and will be taxed when the money is eventually withdrawn. 
  • Tax-exempt accounts, which are funded with after-tax income and will not be taxed when money is eventually withdrawn. 
  • Tax-free withdrawal accounts, which allow you to deduct contributions without paying future taxes, as long as you use anything you withdraw for qualifying expenses.

Types of Tax-Advantaged Accounts

Each type of tax-advantaged account offers its own unique benefits. Not every account may be a good fit for you, so let’s evaluate some of the pros and cons of each tax-advantage account.

Tax-Deferred Accounts

401(k) or 403(b) Accounts

These tax-deferred accounts are offered by employers — 401(k)s from private, for-profit companies, and 403(b)s from government agencies or nonprofit organizations. Conveniently, these contributions can often come directly from your paycheck, and companies offer to match your contribution up to a certain percentage. If your employer does offer a match option, we recommend, in most situations, saving the maximum amount they’ll match. 

Traditional IRA Accounts

A traditional IRA reduces your taxable income by whatever amount you contribute each tax year. You will be taxed when you withdraw money from your account after retirement, but if your retirement income is less than your working income, you’ll only have to pay the lower tax rate, making it a great option for many people.

With traditional IRA accounts, you won’t be taxed on investments until the money is paid out. Even better, the IRS has raised the limit on both of these types of accounts in 2023, so there’s never been a better time to contribute. 

Tax-Exempt Accounts

Roth IRA 

When you contribute to a Roth IRA, you’ll be putting in after-tax dollars. The benefit: you won’t be taxed when you withdraw your money after retirement. This option is appealing to those who may be in a higher tax bracket later. A Roth IRA does have income limits and contribution limits1, but it can still be a suitable option among those who qualify. 

Roth 401(k)

Unlike a Roth IRA, Roth 401(k) accounts are not subject to income limits. If your company offers this option, you may want to use this as a complementary savings plan alongside a 401(k) or 403(b). 

Accounts with Tax-Free Withdrawal


Health savings accounts offer the best of both worlds. You can set aside pre-taxed income for health-related costs and let it accrue over time – and withdraw the money tax-free, too, as long as you use it for qualifying medical expenses. If your company offers an HSA plan, it can be a great way to save money for future health-related expenses whenever they arise. 

529 Plans

These accounts are a great way to save for your child or grandchild’s future education. Contributions to college savings will grow tax-deferred, and can be withdrawn tax-free if used for qualifying educational expenses. Multiple family members can contribute to a 529 account, so for example, grandparents can put in up to $17,000 tax-free dollars this year with a gift tax exemption.2 

Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 college savings plans before investing. More information about 529 college savings plans is available in the issuer’s official statement, and should be read carefully before investing.

Save Well in 2023

Tax efficient investing may seem complicated, but it offers many advantages. At SageSpring, we’re here to help. Remember that saving as much as you can in any of these accounts is often better than doing nothing – but if you need guidance as you make a plan for building wealth, we’d love to help you get started. Contact a financial advisor in your area today. 

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of SageSpring Wealth Partners and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

Jeffrey Dobyns
Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns is President and Founder of SageSpring Wealth Partners. Passionate about serving his clients, he strives to truly get to know them, understand their goals, and provide them with financial confidence before developing and executing ongoing, strategic financial plans. 

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNER™ professional, a Chartered Life Underwriter, a Chartered Financial Consultant, and a participant of the Dave Ramsey SmartVestor referral service program.

Jeff has held executive positions with financial planning firms for more than two decades. He served as VP of Investments of Lykins Financial Group CPAs before founding SageSpring in 2002. Jeff has been recognized for his unwavering commitment to his clients, and as a leader among Raymond James financial advisors, earning membership in Raymond James Chairman’s Council every year since 2008.

Jeff devotes considerable time and resources to a number of causes. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. He is on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes, as well as the advisory board for Halftime Institute of Nashville, an organization that coaches marketplace leaders to discern and engage in their life purpose. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are grateful to be raising their four children, Gracyn, Hunter, and twins Tanner and Logan at Christ Presbyterian Academy. Jeff enjoys being outdoors with his family- boating, hiking, skiing, hunting and fishing.

Ramsey Solution’s relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.