Go mega with a Roth
Finally, you might be able to save more than you realize with a mega backdoor Roth.
With this strategy, after-tax contributions — over the standard 401(k) limits — can be rolled into the Roth 401(k). Or, you can take a distribution and roll it into a Roth IRA account, Tilp says.
“This could allow individuals to save up to $55,000, with a good portion going to a Roth account,” he says. “This is even for individuals whose income is above the eligibility limits for a regular Roth IRA.
Tilp says the IRS recently clarified the rules around this program, and now many 401(k) plans are beginning to allow this. But you’ll need to check with your employer.