The wrong tax strategy in retirement can cost you hundreds of thousands over time. Learn how tax-efficient planning helps protect your nest egg.

A mega backdoor Roth is a retirement strategy that lets high earners contribute after-tax dollars to a 401(k) beyond the standard $24,500 employee deferral limit, then convert those dollars to a Roth account. In 2026, total 401(k) contributions can reach $72,000, or $83,250 for eligible participants ages 60 through 63.

Many executives read a severance agreement and fixate on one number: the total payout. They negotiate the headline figure, sign the paperwork, and move on. Then, weeks later, they open a deposit notification and realize the actual amount hitting their account looks nothing like what they agreed to.

Most executives treat equity compensation as a bonus rather than a planning opportunity. A proactive approach can unlock significantly more value.

The confusion usually starts when your tax documents arrive and the same income seems to appear twice. It is a common worry. Most of the time the income has already been taxed once through payroll, and you simply have to report it correctly so you do not pay on it again.

A taxable account is one where you owe taxes in the year you earn investment income or sell at a profit. Common examples include standard brokerage accounts, joint investment accounts, high-yield savings accounts, money market accounts, and CDs.