<prompt> Human: So I realize the limit is 5500. Since the taxes are applied when I put in my yearly contribution, should I actually put in around 7000? That way I will reach the max limit after the taxes are applied? Also when I open an account, is that where the 3 fund portfolio is used where I can pick mutual funds and etfs? Thanks  <response>: The contribution limit is 5500, not 7K. You contribute after-tax dollars from your regular checking account. No additional taxes are imposed. As to your second question, yes - when you open an account, you can choose how to invest the funds. a 3-fund portfolio is one way, a target-date mutual fund is another, as are ETFs. 