If you have a higher income, maxing out your Roth IRA, HSA, and 401(k) might not seem that daunting – and it may not even be enough to achieve a successful retirement. For example, someone under age 50 that makes $250,000 per year would be able to maximize all of their retirement plans by contributing $36,400 in 2026, or about 15% of their income (assuming they have access to a Roth IRA, HSA, and 401(k)). That’s far short of the 25% investing goal that we suggest, which is especially important to meet for high-income earners. So how can you best meet your 25% investing goal after you’ve maximized all of your traditional retirement accounts?
1. Mega backdoor Roth conversions
Not everyone has an employer plan that allows for what are commonly called mega backdoor Roth conversions, but if you have a higher income, your chances may be a bit higher. To use this strategy, your workplace retirement plan must allow both after-tax contributions and in-plan Roth conversions. After-tax contributions allow you to contribute beyond the typical contribution limit of $24,500 (2026) up to the annual additions limit of $72,000. Your plan also needs to allow in-plan (or in-service) Roth conversions. This will let you convert your after-tax contributions to Roth and build even more tax-free retirement dollars.
Only certain plans are created to allow for mega backdoor Roth conversions, but if your plan has a large number of high-income workers, there may be a better chance your retirement plan meets the criteria. If it doesn’t, you can always be an advocate for change and let your employer know how much you and others at the company would benefit from the ability to use this retirement saving strategy.
Needless to say, this strategy can allow you to save a significant amount of tax-free dollars for retirement. To continue the example from earlier, if someone is making $250,000 and they are able to maximize this strategy, and maximize their other retirement plans, they could contribute a whopping $83,900 to their retirement plans in 2026, or nearly 34% of their income. But what if you want to contribute even more or, more commonly, don’t have the option to do mega backdoor Roth conversions?
2. Self-employed retirement plans
Wealthier Americans and those with higher incomes are more likely to have multiple sources of income. Depending on who you ask, between 45% to 65% of wealthy people have more than one source of income. If you have multiple sources of income, you may be able to contribute to a self-employed retirement plan to invest even more for retirement.
401(k) employee contributions are capped at $24,500 (2026 limit) across all 401(k) plans, but employer contribution limits are separate for each plan. Those with multiple sources of income are often the “employer” or self-employed in one or more of those streams of income. This allows you to contribute more to a separate retirement plan as an employer.
Again continuing the example from earlier, let’s say you make $250,000 per year, but that income is split between traditional employment and self-employment. You make $150,000 at your traditional job, and $100,000 in self-employment income. The amount you could contribute as an employee across both retirement plans is $24,500 in 2026. However, with your self-employment income you can contribute up to 25% of compensation after Social Security and Medicare taxes, up to a maximum of $72,000 if your income allows it.
Self-employed retirement plans such as the solo 401(k) could allow you to invest even more dollars into tax-advantaged retirement savings vehicles. If you have self-employment income and need to invest more for retirement, don’t overlook self-employed retirement plans like solo 401(k)s.
3. Taxable brokerage account
Taxable brokerage accounts are a sort of catch-all for those looking to invest more for retirement. There are no contribution limits and no income requirements. Anyone can contribute as much as they want in a given year, but there are no special tax advantages within taxable brokerage accounts. Short-term gains are taxed as ordinary income and long-term gains are taxed at applicable long-term capital gains rates.
If you are unable to use a mega backdoor Roth or don’t have any self-employment income, or simply need to contribute more for retirement, a taxable account is the place to do it. Because these accounts have no special tax advantages, you generally want to invest in assets that don’t have a lot of turnover, like index funds, or that have built-in tax advantages, such as municipal bonds.
If you have a higher income, you often need to get creative about where you save for retirement. Maximizing all of the traditional retirement savings vehicles simply may not be enough to allow you to retire comfortably. If you find yourself in this situation, take a look at your 401(k) plan to see if it allows for mega backdoor Roth conversions. If you have any self-employment income, you may be able to contribute more for retirement through a self-employed retirement plan. And if all else fails, you can contribute as much as you like to a taxable brokerage account.
