What to Do After You’ve Maxed Out Your 401(k)

by Ralph Bender, MBA, CFP®

If you’re already maxing out your 401(k) and still have money to invest, there are sophisticated strategies that can dramatically accelerate your retirement savings. These techniques require specific plan features that are typically only available through large corporate employers—which means many people with higher incomes don’t even know they exist.

The New “Super Catch-Up”: Ages 60-63 Get an Extra Boost
Starting in 2025, employees aged 60-63 can contribute up to $34,750 annually to their 401(k)—significantly more than the standard $31,000 limit for ages 50-59. This “super catch-up” provision under SECURE 2.0 recognizes that these are often peak earning years when people have the most capacity to save.

The numbers:

• Ages 50-59: $31,000 total ($23,500 + $7,500 catch-up)
• Ages 60-63: $34,750 total ($23,500 + $11,250 super catch-up)
• Ages 64+: Back to $31,000 (regular catch-up only)

If you’re turning 60 this year, that’s an extra $3,750 annually you can shelter from taxes during your highest-earning years.

The Mega Backdoor Roth: For Big Company Employees Only
The mega backdoor Roth lets you contribute up to an additional $46,500 to a Roth account in 2025, but it requires two specific plan features that most small employers can’t or won’t offer:

• After-tax contributions beyond the standard $23,500 limit
• In-service distributions or in-plan Roth conversions

Why small companies can’t do this: After-tax contributions typically fail nondiscrimination testing when highly compensated employees use them heavily but rank-and-file employees don’t. Large companies can pass these tests because they have generous employer matches and more balanced demographics.

For Employees at Specific Companies
Chevron: The ESIP allows after-tax contributions and supports conversions through external Roth IRA rollovers. Critical detail: avoid converting “Basic” after-tax contributions (your first 2% of total contributions) as this will suspend you from the plan. Only convert “Supplemental” after-tax contributions.
Abbott: The Stock Retirement Plan (SRP) supports both after-tax contributions and the conversion process, working alongside the company’s matching program.
Other large employers may offer similar features—check with your benefits administrator about after-tax contributions and in-service distribution options.
The Process (varies by plan):

• Max out regular contributions ($23,500)
• Make after-tax contributions through payroll deductions up to the $70,000 total limit
• Convert accumulated after-tax funds to Roth periodically—some plans offer automatic conversion features, others require manual conversions quarterly or annually to minimize taxable growth

Important 2026 Change: Mandatory Roth Catch-Up Contributions
Starting in 2026, if you earned over $145,000 in FICA wages in 2025, all your workplace plan catch-up contributions must go into a Roth account—no more pre-tax catch-up contributions. This affects 401(k), 403(b), and governmental 457(b) plans, but not IRA contributions.
What this means: If you’re used to getting a tax deduction on your $7,500 (or $11,250 for ages 60-63) catch-up contribution, those days are ending for higher earners. Instead, you’ll pay taxes upfront but get tax-free withdrawals in retirement.
Planning opportunity: The next two years are your last chance to deduct all your deferrals, including catch-up contributions, if you’re in this income range. But this change might actually be a good reason to start Roth contributions now rather than waiting—especially since some plans are just beginning to offer Roth options. Every plan is unique, and every client situation requires individual analysis. Talk with us about long-term tax planning strategies that make sense for your specific circumstances.

Required Minimum Distributions: The 73-Year Rule
If you turn 73 in 2025, your first RMD is due by April 1, 2026. But here’s what most people miss: if you’re still working and don’t own 5% or more of the company, you can delay RMDs from your current employer’s plan until you actually retire.
This is huge for high earners who plan to work past 73—you can keep that money growing tax-deferred while taking RMDs only from old 401(k)s and IRAs.

Making It Work: Practical Steps
Step 1: Determine if your plan supports mega backdoor Roth Download your plan’s Summary Plan Description (SPD) from your benefits portal or HR department. Look for language about “after-tax contributions,” “voluntary contributions,” or “non-Roth after-tax contributions.” If you’re unsure about the technical language, send us the SPD for a complimentary review—we can quickly identify whether your plan has the necessary features.

For employees at mega backdoor-capable companies:

• Calculate your maximum after-tax space: $70,000 minus your contributions and employer match
• Set up after-tax contributions through payroll
• Schedule periodic conversions (timing depends on your plan’s features)
• Consider coordination with bonus payments and market timing

For everyone else:

• Maximize the age-appropriate contribution limits
• Consider traditional vs. Roth based on current vs. expected future tax rates
• Coordinate with other tax-advantaged accounts (HSA, backdoor Roth IRA)
• Plan for the 2026 mandatory Roth catch-up rule

The Bottom Line
These strategies can add hundreds of thousands of dollars to your retirement savings over time, but they require sophisticated plan features and careful execution. If your current employer doesn’t offer after-tax contributions, that might be worth considering in future job decisions—the long-term wealth-building potential is substantial.

The rules are complex and the stakes are high. Before implementing any of these strategies, consult with a financial professional who understands the nuances of corporate retirement plans and high-earner tax planning.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Securities are offered through LPL Financial, Member FINRA / SIPC. Investment advice offered through Enduring Wealth Advisors®, LLC, a registered investment advisor. Enduring Wealth Advisors®, LLC and Enduring Wealth, Inc are separate entities from LPL Financial.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

Research and development of this article included the use of artificial intelligence tools.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

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