Your 401(k) max is $23,500. On $2M income, that's 1.2%.
The Retirement Savings Menu:
Every Option from 401(k) to Tax-Free Retirement Income (When IRS Rules Are Met)
Most high earners only know about Tier 1. There are four tiers. Each one saves more, shelters more, and gives you more control. Here's the complete menu.
401(k) / 403(b) / 457 / TSP
Your employer's retirement plan. You contribute pre-tax dollars, they grow tax-deferred, and you pay income tax when you withdraw in retirement. Most high earners max this out and think they're done.
The catch: Every dollar is taxed when you take it out. At 37%, your $2M becomes $1.26M. And at age 73, the IRS forces you to withdraw (Required Minimum Distributions) whether you need the money or not.
$23,500
Max per year (2025)
Taxed on withdrawal
Roth 401(k)
Same as your 401(k), but you contribute after-tax dollars. The money grows tax-free and, once the IRS 5-year rule and age 59½ are met, you withdraw it tax-free in retirement. No Required Minimum Distributions.
The catch: You don't get a tax deduction today. And the contribution limit is the same $23,500, shared with your traditional 401(k). At your income level, the upfront tax hit is steep.
$23,500
Shared with 401(k)
Tax-free if qualified
Backdoor Roth IRA
High earners are blocked from contributing directly to a Roth IRA (income limit: $240K for married couples). The Backdoor Roth is a legal workaround: contribute to a traditional IRA, then immediately convert to Roth. The result is tax-free growth and tax-free withdrawals when IRS requirements are met.
The catch: The limit is only $7,000/year ($8,000 if 50+). Helpful but small relative to your income.
$7,000
Per year
Tax-free if qualified
Mega Backdoor Roth
If your employer's 401(k) plan allows after-tax contributions, you can contribute up to $69,000 total (including employer match), then convert the after-tax portion to Roth. This is the largest Roth contribution vehicle available to W-2 employees.
The catch: Not all employer plans allow this. Check with HR. If they do, this is the single most valuable move you can make as a W-2 employee.
$69,000
Total (incl. match)
Tax-free if qualified
A business unlocks everything below
SEP IRA (Simplified Employee Pension)
A retirement account funded entirely by your business. Contribute up to 25% of net self-employment income. No employee contributions, so it's simpler than a 401(k).
Best for: Solo consultants or small businesses with no employees. Easy to set up, high contribution limits.
$69,000
Per year (2025)
Taxed on withdrawal
SIMPLE IRA (Savings Incentive Match Plan)
A retirement plan for businesses with 100 or fewer employees. Both employer and employee contribute. Lower limits than a SEP but includes a mandatory employer match.
Best for: Small businesses that want to provide retirement benefits to a team. Not ideal for maximizing owner contributions.
$16,500
Employee + match
Taxed on withdrawal
Solo 401(k)
A 401(k) designed for self-employed individuals with no employees (other than a spouse). You contribute as both employer AND employee, which doubles your contribution capacity compared to a standard 401(k).
Best for: Solo consultants who want maximum tax-deferred savings. Can include a Roth option for tax-free withdrawals when IRS requirements are met.
$69,000
Per year (2025)
Taxed (or Roth option)
Cash Balance Plan / Defined Benefit Plan
The most powerful retirement savings vehicle in the tax code. A Defined Benefit Plan lets you contribute $100,000 to $300,000+ per year depending on your age, and deduct every dollar from your taxable income. The older you are, the more you can contribute.
Best for: High-earning business owners over 40 who want to shelter massive amounts of income. This is why Lever 1 (starting a business) matters: it unlocks this plan. A 50-year-old can contribute $250K+/year. That's 10x your 401(k) limit.
$300K+
Per year (age-dependent)
Taxed on withdrawal
Now convert toward potentially tax-free income
Taylored WealthCare™ Core
Take your existing retirement savings (401k, IRA, any qualified plan) and convert them into a retirement income stream that can be tax-free when IRS requirements are met. The Core strategy uses a Fixed Index Annuity (FIA), an insurance product that grows based on a market index like the S&P 500 but can never lose value, with a 20% premium bonus on your rollover. You then convert to Roth status over 5 years, paying a smaller tax now to avoid a much larger tax later.
Best for: Anyone with $250K+ in retirement savings who wants to convert tax-deferred money to potentially tax-free income. No business required.
No limit
Rollover-based
Tax-free if qualified
Taylored WealthCare™ Architect
The complete retirement architecture. Combines every tool in Tiers 1-3 with strategic conversion and tax-free distribution. This is timing, combining, and sequencing at the highest level: each piece amplifies the others, and the result is a retirement income stream that can be 100% tax-free once the IRS 5-year rule and age 59½ are met, with no Required Minimum Distributions and no forced withdrawals, plus income options backed by the issuing insurance carrier's claims-paying ability.
Best for: High earners with $1M+ in retirement savings and a business (Lever 1). This is the strategy that turned a $2M 401(k) with a $740K tax bill into $4.5M+ in potentially tax-free retirement wealth.
No limit
Full architecture
Tax-free if qualified
Inside the Taylored WealthCare™ Strategies
Taylored WealthCare™ Core
Convert what you already have to potentially tax-free income. No business required.
1
Roll Over
Move your 401(k)/IRA into a Fixed Index Annuity with a 20% premium bonus
2
Convert
Roth conversion over 5 years. Pay a smaller tax now, avoid the bigger one later.
3
Grow Tax-Free
Your money grows indexed to the S&P 500 with a 0% floor (never lose in a down year)
4
Withdraw Tax-Free
Income in retirement can be 100% tax-free once IRS requirements are met. No Required Minimum Distributions. You choose when and how much.
Example: $1M 401(k) Conversion
$1.2M starting (with 20% bonus) → Tax-free retirement income when IRS rules are met
Instead of paying $370K in taxes on withdrawal, you pay ~$200K in conversion tax over 5 years, and qualified Roth distributions can then be taken tax-free when IRS requirements are met
Taylored WealthCare™ Architect
The complete sequence. Every tool, perfectly timed.
1
Defined Benefit Plan
Deduct $200K-$300K/year from taxable income via your business
2
Mega Backdoor Roth
$69K/year into a potentially tax-free Roth through after-tax 401(k) provision
3
FIA + Roth Conversion
Roll existing savings into FIA with 20% bonus, convert over 5 years
4
Indexed Universal Life
Fund IUL for additional tax-free growth and tax-free policy loan income, when structured to meet IRS requirements
5
Tax-Free Distributions
Retirement income from Roth withdrawals + policy loans. Can be 100% tax-free when IRS requirements are met. No RMDs. Income options backed by the issuing insurance carrier's claims-paying ability.
Example: $2M 401(k) + Business + 10 Years
$4.5M+ in potentially tax-free retirement wealth
$15,000+/month in potentially tax-free income, continuing to age 100+. A $2M 401(k) alone would have generated a $740K tax bill and run out at age 85.
Which tier are you on right now?
If your only retirement strategy is maxing your 401(k), you're on Tier 1. That's $23,500/year on $2M income. You're saving 1.2% of what you earn, and every dollar will be taxed when you take it out. The menu above shows you what's possible when you move to Tier 4.
One client's $2M 401(k) would have generated a $740,000 tax bill. After the Taylored WealthCare Architect strategy, their retirement income can be 100% tax-free once IRS requirements are met. Savings on this lever alone: $212,500/year. And this is just lever 4 of 7.
Taylored Tax client (identity protected). Retirement is the biggest lever for most high earners. The other six amplify it further.
Ready to move up a tier?
Pick the path that fits where you are right now.
