If your 401(k) plan allows after-tax contributions and in-service conversions, you can stuff up to ~$46K/year extra into Roth accounts. The holy grail for high-income FIRE seekers.
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Related terms
A self-employed retirement account that lets you contribute up to 25% of net self-employment income ($69,000 cap in 2026). Simple to open; no Roth option.
IRA where contributions are tax-deductible today, but withdrawals in retirement are taxed as income.
A dividend taxed at long-term capital gains rates (0%, 15%, or 20%) instead of ordinary income. Must meet holding-period requirements — most U.S. stock fund dividends qualify.
Mandatory annual withdrawals from most pre-tax retirement accounts starting at age 73. Roth IRAs (owner's) are exempt. Miss one and the penalty is brutal.
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