Core Insights - The megabackdoor Roth IRA strategy allows high earners to significantly increase their retirement savings by enabling them to contribute beyond the standard 401(k) limits, with even more generous limits set for 2026 [1][2] Contribution Limits - In 2026, employees can contribute a total of $72,000 to their 401(k) accounts, which includes a standard contribution of $24,500 and an additional $47,500 in after-tax contributions, an increase from $70,000 in 2025 [2] - Workers aged 50 to 59 can add an extra $8,000 in catch-up contributions, raising the maximum to $80,000, while those aged 60 to 63 may save up to $83,500 if permitted by their plan [2] Execution of the Strategy - The megabackdoor Roth strategy involves three steps: maxing out the standard contribution, deferring additional after-tax contributions, and converting those after-tax dollars to Roth status, allowing for tax-free growth and withdrawals [3][4] - Immediate conversion of after-tax contributions to Roth is crucial; otherwise, earnings will be taxed as ordinary income upon withdrawal [5] Market Sentiment - A significant portion of high-income earners feel pressured about retirement savings, with 45% of individuals earning at least $100,000 expressing concern, and 19% of those earning $200,000 or more feeling off track for retirement [6]