Let's assume a hypothetical individual is a contractor working in the US and paid with 1099. He does not have any other employees and his business is not registered anywhere.
He is in his mid thirties with a solid emergency fund and no debt of any kind.
The only retirement plan he has is Roth IRA which has been maxed out for the previous three years. He has no health issues right now and he opened a Health Savings Account in 2013.
He considers two possible actions.
- Max out his HSA for year 2014
- Open one of SEP or SIMPLE IRAs and diverge all or some of the cash saved for HSA to this new retirement account.
What would one recommend to this hypothetical individual based on the information provided?