2026 401(k) Strategy for High Earners | With Dan Pascone | Ep #54

If you're a high earner revisiting your employer retirement plan contributions in 2026, this episode is for you. In this episode of Making Sense of Your Money, I break down the three retirement tax buckets, how employer retirement plans actually work, and why the mega backdoor Roth can be one of the most powerful strategies available to high-income professionals who want to build more future tax-free flexibility. A lot of people think “maxing out the 401(k)” means they’re done. In reality, many plans allow significantly more savings capacity through after-tax contributions and automatic Roth conversions, but only if you know what to ask for and how to set it up correctly. In this episode, I walk through: The difference between taxable, tax-deferred, and future tax-free accounts How traditional 401(k), Roth 401(k), and after-tax 401(k) contributions differ What the mega backdoor Roth is and why it matters The 2026 contribution limits and how to think about them strategically How to calculate your available after-tax contribution capacity The key questions to ask your employer or 401(k) provider Why this strategy is about tax diversification, not just saving more If you're a corporate leader, executive, or high-income professional trying to optimize retirement savings, this is one of the most important planning concepts to understand. ⏰ Timestamps: 0:00 Intro: Why this solo episode matters 1:03 Why Q1 is the right time to revisit retirement contributions 2:00 The 3 retirement tax buckets explained 4:05 Traditional 401(k) vs Roth 401(k) vs after-tax 401(k) 5:45 What the mega backdoor Roth actually is 7:25 2026 contribution limits and how much you can save 9:10 How to calculate your available after-tax contribution room 11:20 Real client example: maximizing the strategy 14:05 Why Roth money creates future tax flexibility 16:10 The key question: which tax bucket should you use? 18:15 Why the mega backdoor Roth is often misunderstood 20:10 What to ask your benefits team or 401(k) provider 22:00 Final thoughts and what to review in Q1 Enjoying the episode? Take the next step. Explore full-length video strategies, expert insights, and subscribe to the Making Sense of Your Money newsletter all at: https://makingsenseofyourmoney.com Looking for expert guidance tailored to your unique financial situation? Get free resources and book a complimentary Wealth Clarity Consultation at: https://yourtailoredwealth.com Your life. Your money. Your future. All tailored to you. #MegaBackdoorRoth #401kStrategy #highearners #RetirementPlanning #Roth401k #taxplanning #FinancialPlanning #TailoredWealth #DanPascone #makingsenseofyourmoney