Retirement Tax Strategies for High Earners: How to Maximize Savings and Build Long-Term Wealth
At Mana, we often meet people at an inflection point. They’re high earners - partners at law firms, tech executives, founders, dual-income couples with equity compensation. From the outside, everything looks dialed in. But there’s an undercurrent of urgency:
“I don’t want to work like this forever.”
“I want options.”
“I want to be free before I burn out.”
That’s not about dollars. That’s about control.
If you’re earning well, the game isn’t just about accumulating more. It’s about building a structure that gives you choice. And retirement planning, done well, is exactly that: an architecture of future freedom.
Below are the tools we use with clients like you - not as checklists, but as levers. Pull the right ones at the right time, and you can shift your entire trajectory.
1. Traditional 401(k): Time’s Most Underrated Tax Hack
There’s a beautiful simplicity in the traditional 401(k). You contribute pre-tax dollars and your money grows tax-deferred. You lower your taxable income now while setting up your future.
But here’s the overlooked part: the psychological benefit.
When your income is high, the tax burden can feel like quicksand. The traditional 401(k) is your lifeline. Contribute the max ($23,500 in 2025), get your employer match, and you’re not just saving., you’re reclaiming control over your earnings.
Why it matters: You’re not gambling on the market. You’re betting that your future self will be in a lower tax bracket. If that’s true, this is a winning play.
Who helps: Your employer offers it. Your financial planner ensures you’re optimizing it.
2. Roth 401(k): Paying the Toll Upfront
This one is for those who don’t trust tomorrow’s tax code.
If you think tax rates are going up, or that you’ll be in the same or a higher tax bracket in retirement, a Roth 401(k) lets you pay taxes now and enjoy tax-free growth later. You contribute after-tax dollars, and in return, your future self gets to withdraw without worrying about Uncle Sam showing up.
It’s like buying a lifetime tax insurance policy.
Why it matters: This is less about today’s numbers and more about tomorrow’s uncertainty. If that makes you uneasy, the Roth is your hedge.
Who helps: A planner who understands both your cash flow today and your tax forecast twenty years out.
3. Backdoor Roth IRA: For Those Who “Make Too Much”
A lot of high earners think they’re locked out of Roth IRAs because of income limits. That’s half true. The full truth? There’s a side door…or should we say, back door Roth :)
Here’s how it works: You make a nondeductible contribution to a traditional IRA, then convert it to a Roth IRA. No income limits, no penalty. Just tax-free growth once it’s in.
It’s not a loophole. It’s a strategy written into the tax code.
Why it matters: Most people ignore this because it feels complicated. But complexity is often where the real advantage hides.
Who helps: A financial planner and tax advisor who know how to execute the conversion cleanly. DIY attempts often blow up here. Don’t be that headline.
4. Mega Backdoor Roth: Retirement on Steroids
If the backdoor Roth is clever, the mega backdoor Roth is powerful.
Let’s say you’ve already maxed your regular 401(k) and backdoor Roth, and you’re still asking, “Where else can I put money to work for future me?” If your employer’s plan allows it, you can contribute up to $46,500 in after-tax dollars to your 401(k) in 2025 and convert that to a Roth IRA.
Yes, $46,500.
Why it matters: This is one of the few legal ways high earners can supercharge tax-advantaged retirement savings beyond the usual caps.
Who helps: Your employer must offer a plan with after-tax contributions and in-service withdrawals. A planner connects the dots. A tax pro makes sure it doesn’t backfire.
5. Health Savings Account (HSA): The Triple Threat
Think of the HSA as a stealth retirement account hiding in plain sight.
You contribute pre-tax. It grows tax-free. Withdrawals for medical expenses? Also tax-free. That’s three layers of tax advantage (more than any other account offers).
But the twist? Once you’re 65, you can use it for anything. You’ll just pay income tax if it’s not medical, essentially turning it into a traditional IRA.
Why it matters: Healthcare is one of the biggest retirement expenses. An HSA gives you a focused way to prepare, and flexibility if plans change.
Who helps: You’ll need a High Deductible Health Plan (HDHP) and clarity on contribution limits ($4,300 for self-only coverage or $8,550 for family coverage in 2025). Your planner weaves it into your overall strategy.
6. Taxable Brokerage Accounts: Liquidity Is Power
Not everything needs to be tax-advantaged. Sometimes, what you really need is flexibility.
Taxable brokerage accounts don’t come with age restrictions, penalties, or contribution limits. They give you access to your money on your terms. Want to retire at 50? Launch a startup at 45? Fund a sabbatical at 38? This is your engine.
Why it matters: You pay capital gains, sure. But in return, you get something most retirement accounts can’t offer: choice.
Who helps: A planner who balances tax efficiency with the need for liquidity and early-access goals.
The Real Strategy: Optionality
There is no one retirement path. But there is a shared goal among our clients:
Freedom. Not for the sake of not working, but rather, to do the kind of work they love.
The more diversified your retirement accounts, the more freedom you create. You’re not just preparing for some far-off age. You’re building a portfolio of future options.
At Mana we help you design a life where work becomes a choice, not a requirement.
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Stephanie Bucko and Cristina Livadary are fee-only financial planners based in Los Angeles, California. Stephanie is the Chief Investment Officer and Cristina is the Chief Executive Officer at Mana Financial Life Design (FLD). Mana FLD provides comprehensive financial planning and investment management services to help clients grow and protect their wealth throughout life’s journey. Mana FLD specializes in advising ambitious professionals who seek financial knowledge and want to implement creative budgeting, savings, proactive planning and powerful investment strategies. As fee-only fiduciaries and independent financial advisors, Stephanie and Cristina never receive commission of any kind. Stephanie and Cristina are legally bound by their certifications to provide unbiased and trustworthy financial advice.