Full Article Link: Kiplinger – Already Hit Your 401(k) Limit in 2025? Here’s What To Do Next
“The problem with only sheltering money in Roths, HSAs, and other tax-advantaged accounts is that those dollars are locked up. We often see high earners become net-worth rich but liquidity-poor. They have plenty saved, but all in accounts they can’t access without penalty. That’s a challenge when you want to pay down a mortgage, buy a second home, or make a large purchase.”
—Stephan Shipe, Founder of Scholar Financial Advising
Key Takeaways
- Maxing out your 401(k) is a milestone, but it shouldn’t be the end of your retirement strategy. In 2025, the total contribution limit (including employer match) can reach up to $81,250 for some savers.
- Next-level savings tools include: Non-qualified deferred compensation plans, HSAs, backdoor and mega backdoor Roth IRAs, taxable brokerage accounts, donor-advised funds, and deferred annuities.
- Liquidity matters. Stephan Shipe emphasizes that high-income earners often over-concentrate in tax-advantaged accounts, leading to limited flexibility for major purchases or strategic spending.
- Tax efficiency should be personalized. Evaluate each savings option based on your income bracket, time horizon, and future tax outlook to balance growth with accessibility.
- A tailored plan is essential. Super savers should work with a fiduciary advisor to align these strategies with long-term financial goals, family needs, and legacy plans.