3 Planning Moves to Make After You Max Out Your 401k

Once you've maxed out your 401k, most people stop there, but that's just the beginning of smart retirement planning.

Once you've contributed the $23,500 employee maximum to your 401k, your retirement planning shouldn't stop there. Here are three advanced strategies to consider:

1. Mega Backdoor Roth via After-Tax Contributions

If your employer plan permits, you can contribute up to $70,000 total in 2025. After your $23,500 employee contribution, that leaves room for up to $46,500 in after-tax contributions that can be converted to Roth.

2. Taxable Brokerage Accounts for Pre-59½ Flexibility

These accounts offer penalty-free access at any age, no contribution limits, and no required distributions. Essential for early retirement planning or maintaining liquidity outside of retirement accounts.

3. Backdoor Roth IRA Strategy

For 2025, single filers earning above $165,000 cannot contribute directly to a Roth IRA. However, you can make a $7,000 nondeductible traditional IRA contribution and immediately convert it to Roth, a proven strategy for high-income professionals.

Sentient Financial is a state‑registered investment adviser in California. This post is for informational purposes only and is not an offer to buy or sell securities or to provide investment advice. Past performance does not guarantee future results.