Retirement-plan contributions maxed out? Try federally insured emergency savings

Like finding a spot to park your Porsche, some problems are great to have. Add this one to the list: You've maxed out your retirement-plan contributions and need another place to stash your savings.

Steve Kudile, a 33-year-old Verizon employee from Elkton, Md., faces that very problem. He plunks down 16 percent of his salary in a 401(k) plan and invests $4,000 in a Roth IRA each year.

Kudile would like to shelter even more savings and has considered a deferred variable annuity, in which his earnings could grow tax-deferred until withdrawn later. But the excessively high fees and restrictions on tapping his investment before he's 59 1/2 give him pause. If you're in the same boat, you have better options that will give you easy access to your money and, in many cases, more favorable tax treatment on your earnings.

Start with a review of your savings. If you don't have at least three months' worth of expenses in an emergency fund, boost your reserves. With short-term interest rates hovering around 5 percent, now is an excellent time to hunt for a federally insured savings account.

Online accounts generally pay higher interest rates than their brick-and-mortar counterparts, but yields, minimum deposit requirements and accessibility rules can vary widely. Check out Bankrate.com to find top-yielding accounts.

If you have your emergency fund covered, then open a taxable account with a mutual fund company or discount broker. To get the biggest tax bang, you may have to rethink the way you allocate your assets. In a taxable account, it's preferable to hold investments that benefit from the maximum 15 percent rate reserved for qualified dividends and long-term capital gains — that is, investments held at least one year. (Those same investments held inside a 401(k) plan or a traditional IRA would be subject to ordinary income-tax rates, which can be as high as 35 percent, when you withdraw funds.) Plus, if you have investment losses in a taxable account, you can use them to offset gains and, after that, up to $3,000 of ordinary income.

Although you can't claim losses on them, retirement accounts do offer an up-front tax break and shelter your investment earnings from tax until withdrawn. They are best suited for investments that tend to be taxed at higher rates — such as actively managed mutual funds with high turnover, real estate investment trusts and taxable bonds.

However, if most of your assets are locked up inside retirement accounts, it's more important to focus on a mix of investments that match your risk tolerance and time horizon, regardless of the tax consequences.