Equity compensation comes with hidden tax traps that can catch you off guard. Learn the risks and tax consequences before your next vesting date.

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.

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.

High-net-worth individuals face a different tax game entirely. The strategies that built your wealth may not be the ones that protect it.

New rules are changing how catch-up contributions work for high earners. Here's why the shift to Roth may actually work in your favor.

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.