I'm a high earner who has always maxed out my 401k. I keep hearing about backdoor Roth IRA - what is it?

Cheese's case highlights how even diligent savers can overlook beneficial strategies like after-tax contributions and Roth conversions that might enhance their retirement savings.

By maxing out a 401(k), Cheese reduces her taxable income significantly, but with the annual contribution limits, she may still find herself wanting more ways to save.

While the traditional 401(k) is beneficial for retirement savings, high earners may benefit from exploring after-tax contributions and backdoor Roth options for greater flexibility.

Understanding the nuances of after-tax contributions can unlock additional savings opportunities, especially when rolled over into accounts that allow for tax-free growth.

Read at 24/7 Wall St.