You maxed retirement accounts

Who this is for

Savers who will hit the employee deferral limit this year and still have surplus. If you have not captured the match, start there instead.

Why it matters

Stopping at the limit caps the savings rate at whatever the limit is, divided by income. Higher earners can accidentally save “the max” and still save a small share of pay.

A common sequence

• Confirm you will actually hit the limit, including any catch-up if you are eligible.
• Fund an HSA if the health plan is eligible and you can pay current medical bills from cash.
• Check IRA eligibility for this tax year. If a direct Roth is unavailable, do not invent a backdoor unless you understand the pro-rata rule.
• Send the rest to a taxable brokerage account on the same schedule as the 401(k).
• Keep the emergency fund in cash. Do not call the brokerage account a reserve.

Exceptions

A mega backdoor Roth requires a plan that allows after-tax contributions and in-plan conversions or withdrawals. Many plans do not. Depending on your tax situation, municipal bonds or tax-loss harvesting matter more in taxable accounts than they did in the 401(k). This playbook does not pick funds.

Worked example

A household maxes a 2026 deferral and still saves $20,000. If an HSA is not available and an IRA is blocked by income, the $20,000 goes to taxable. The compound-growth tool shows what that annual addition becomes. The account type does not change the need to invest it.