A recent Wall Street Journal article highlighted a startling data point: nearly 12,000 taxpayers had IRAs worth $10 million or more in 2024—up sharply from 2019. Most households, of course, aren’t anywhere near that. Many Americans have less than $100,000 saved across their retirement accounts.
It’s easy to look at those headline numbers and conclude that “supersized” retirement balances are only for tech insiders who got lucky with startup shares. But the more useful lesson is much more practical: retirement accounts can grow dramatically when you consistently take advantage of the tax rules and contribution opportunities available to everyday savers.
Below is a guide to four strategies that can materially increase long-term retirement savings—along with the trade-offs and “fine print” to understand before taking action.
1) Start with the simplest lever: save the maximum you reasonably can
The most reliable driver of a large retirement balance isn’t a secret investment—it’s a high, consistent savings rate, especially inside tax-advantaged accounts like a 401(k) or IRA.
For 2026, workplace plan contribution limits are substantial, and higher still for those eligible for catch-up contributions. The key idea is this: if your cash flow allows it, increasing contributions—especially early and consistently—can meaningfully change your long-term outcome.
Traditional vs. Roth: choose intentionally
If your plan offers both traditional (pre-tax) and Roth (after-tax) contributions, you often have a meaningful planning decision:
- Traditional 401(k)/IRA (pre-tax): you generally receive a tax benefit now; withdrawals are typically taxable later.
- Roth 401(k)/Roth IRA (after-tax): you pay tax now; qualified withdrawals are generally tax-free later.
There’s no universal right answer—your current tax bracket, expected future income, required minimum distribution considerations, Medicare premiums, and legacy goals can all influence the best mix.
Action step: If you’re unsure where to start, consider gradually increasing your contribution rate (for example, 1% every few months) until you reach a level that feels sustainable.
2) If you earn too much for a direct Roth IRA, learn the “backdoor” Roth rules
High earners often run into income limits that restrict direct Roth IRA contributions. One workaround frequently discussed is a backdoor Roth IRA conversion, which typically involves:
1. Making a non-deductible contribution to a traditional IRA (money that’s already been taxed).
2. Converting those dollars to a Roth IRA.
If done correctly, the tax cost may be limited—often to any investment growth between contribution and conversion.
Important caution: the pro-rata rule can complicate this
If you already have other traditional IRA assets (including SEP or SIMPLE IRAs), the IRS pro-rata rule can cause part of the conversion to be taxable. This is where people get surprised.
Action step: Before attempting a backdoor Roth, it’s wise to review your entire IRA “universe” and coordinate with a tax professional to avoid an avoidable tax bill.
3) For some 401(k) plans, the “mega-backdoor” Roth can be a powerful opportunity
Another strategy gaining traction is the mega-backdoor Roth, which applies in certain workplace plans that allow:
- After-tax (non-Roth) employee contributions beyond the standard salary deferral limit, and
- An in-plan Roth conversion (or an in-service rollover to a Roth IRA, depending on the plan).
Under IRS rules, total additions to a 401(k)—including employee contributions, employer match, profit sharing, and certain after-tax contributions—can be much higher than the basic employee deferral limit. For eligible savers, this can create a path to move meaningful dollars into Roth treatment, where growth may be tax-free if qualified.
The catch: it’s plan-dependent
Not every employer plan permits after-tax contributions, and not all plans make conversions easy. Some plans automate conversions; others require manual steps. The details matter.
Action step: Ask your HR team or plan provider these two questions:
1. “Does our plan allow after-tax contributions?”
2. “Does our plan allow in-plan Roth conversions of after-tax contributions (and how often)?”
If the answer to both is yes, it may be worth a deeper review.
4) Business owners and certain professionals: consider a cash balance pension plan
For higher-income business owners—especially those closer to retirement—a cash balance plan can sometimes allow very large tax-deferred contributions.
A cash balance plan is technically a pension plan, though it can look and feel somewhat like a 401(k) in how benefits are tracked. Because it’s a pension, the annual contribution amounts can be significantly higher than standard defined contribution limits—particularly for older owners.
Why it can be attractive
- Potentially higher contribution capacity than a 401(k) alone
- Tax deferral that may be valuable in peak earning years
- Can be paired with a 401(k) in many plan designs
Why it’s not a fit for everyone
- Typically involves plan setup costs and ongoing administration
- Usually requires making contributions for eligible employees
- Best suited for businesses with stable cash flow
Action step: If you’re a business owner, ask whether your retirement plan is “maxed out by design.” In some cases, improving plan design can increase your savings capacity while still meeting employee benefit requirements.
Bringing it all together: what “supersizing” really depends on
It’s tempting to focus on the most extreme outcomes—eight-figure accounts and “perfect” timing. But for most families, the more realistic and controllable path is:
- Maximizing contributions when possible
- Using Roth strategies thoughtfully (backdoor or mega-backdoor when appropriate)
- Exploring business-owner plan design opportunities, including cash balance plans
- Staying disciplined with a long-term investment approach aligned to your goals and risk tolerance
If you’d like help evaluating which of these strategies applies to your situation, we can review your current savings rate, plan features, and tax considerations—and map out next steps in a way that fits your broader retirement timeline.
Important: This article is for informational purposes only and isn’t tax or legal advice. Retirement plan rules are complex and can change. Consult a qualified tax professional before implementing Roth conversion or pension strategies. Please consult a qualified tax professional regarding your individual circumstances.
A Roth IRA conversion—sometimes called a backdoor Roth strategy—is a way to contribute to a Roth IRA when income exceeds standard limits. The converted amount is treated as taxable income and may affect your tax bracket. Federal, state, and local taxes may apply. If you’re required to take a minimum distribution in the year of conversion, it must be completed before converting.
To qualify for tax-free withdrawals, you must generally be age 59½ and hold the converted funds in the Roth IRA for at least five years. Each conversion has its own five-year period, and early withdrawals may be subject to a 10% penalty unless an exception applies. Income limits still apply for future direct Roth IRA contributions.
A Roth IRA conversion—sometimes called a backdoor Roth strategy—is a way to contribute to a Roth IRA when income exceeds standard limits. The converted amount is treated as taxable income and may affect your tax bracket. Federal, state, and local taxes may apply. If you’re required to take a minimum distribution in the year of conversion, it must be completed before converting. To qualify for tax-free withdrawals, you must generally be age 59½ and hold the converted funds in the Roth IRA for at least five years. Each conversion has its own five-year period, and early withdrawals may be subject to a 10% penalty unless an exception applies. Income limits still apply for future direct Roth IRA contributions.