Maxed Out Your Workplace Retirement Plan? Smart Ways to Keep Saving

Maxing out your workplace retirement plan might give you a false sense of being on track.

As a physician, that alone often isn’t enough to reach the recommended 15–20% retirement savings target. The good news? There are smart, tax-efficient ways to keep saving even after you hit that limit.

Let’s walk through your options.

Start With the Basics: Make Sure You’re Getting the Match

Before you explore additional savings strategies, double-check that you’re contributing at least enough to get your full employer match. This is part of your compensation—and not claiming it is like turning down free money.

If you’re already hitting the employee max ($23,500 for 2025), also take a moment to review whether you’re getting additional employer contributions like profit sharing. Many physicians overlook this when tallying their total savings rate.

Once you’ve made the most of your workplace plan, it’s time to look at other options to fill the gap.

Option 1: Add a Roth IRA (Via the Backdoor)

If your income is too high to contribute directly to a Roth IRA (in 2025, the limit is $150,000 for single filers or $236,000 for married couples filing jointly), you may still be able to use a Backdoor Roth IRA.

Here’s how it works:

• You make a non-deductible contribution to a traditional IRA (up to $7,000 in 2025 if under age 50).
• Then you convert it to a Roth IRA, where it grows tax-free.

This strategy takes a bit of setup and tax-awareness, but it’s one of the  most accessible ways for high-income physicians to keep building tax-free retirement assets.

Option 2: Look Into a 457(b) Plan

If you work for a nonprofit hospital, government entity, or university, you might have access to a 457(b) plan. The big advantage? The 457(b) has its own separate annual limit from your 403(b) or 401(k)—meaning you could double your tax-advantaged savings.

For 2025, the 457(b) contribution limit is also $23,500, so if your employer offers both a 403(b) and a 457(b), you could potentially save $47,000 pre-tax.

But be aware: there are two types of 457(b)s—governmental and non-governmental. The former offers more flexibility and less risk. The latter can tie your money to your employer’s financial stability and limit withdrawal options. If you’re in a non-governmental 457(b), do your homework (or talk with a financial planner) before contributing.

Option 3: Use a Taxable Brokerage Account

A taxable brokerage account lets you invest in things like stocks, bonds, mutual funds, and ETFs. Unlike a 401(k) or Roth IRA, you don’t get a tax break for putting money in—but there are no contribution limits, no income limits, and no rules about when you can access your money. That makes these accounts incredibly flexible.

Because earnings in a taxable account aren’t tax-deferred, the key is to invest in a way that minimizes taxes over time. That usually means choosing low-cost index funds or ETFs, which don’t buy and sell often and are generally more tax-efficient. If you plan to hold your investments for more than a year, you’ll benefit from long-term capital gains rates, which are lower than ordinary income tax rates. And if your investments pay qualified dividends, those are also taxed at a lower rate.

So while you may owe some taxes along the way, using a taxable brokerage account as part of your broader strategy can give you more room to save—and more flexibility to access funds when you need them.

Option 4: Mega Backdoor Roth Contributions

If your workplace retirement plan allows after-tax contributions and in-plan Roth conversions, you may be eligible for what’s known as a Mega Backdoor Roth strategy.

This involves:

1. Making after-tax contributions beyond the normal $23,500 employee limit
2. Converting those contributions to your Roth 401(k) or Roth IRA
   

In 2025, the combined total limit for all contributions (employee + employer + after-tax) is $70,000. So if your employer match is, say, $14,000, and you’ve contributed $23,500 pre-tax, you could potentially contribute another $32,500 after-tax, then convert it to Roth.

It’s not available in every plan—and can be a bit complex—but it’s a huge opportunity if you're a high saver with access to it.

Bonus Option: Solo 401(k) for Side Income

If you have independent contractor (1099) income you may be able to open a Solo 401(k) to shelter more savings.

While your employee contribution is shared across all plans, you can still make employer contributions (typically up to 20% of your self-employed income) to a Solo 401(k), even if you’re maxed out through your main job. And if you design your plan correctly, you may even be able to implement the Mega Backdoor Roth strategy here too.

The Bottom Line

If you’ve maxed out your workplace retirement plan but are falling short of your retirement savings goals, you’ve got options. Roth IRAs, 457(b) plans, taxable accounts, and Mega Backdoor Roth strategies can help close the gap and build flexibility into your future.

The best strategy for you depends on your income, goals, tax situation, and employer benefits. But one thing’s for sure: being proactive about this now gives you more freedom later—whether that means working less, retiring early, or just having choices.

Additional Resources: 

The Mega Backdoor Roth Explained: Who It’s For and When It Works

Wrenne Financial Planning is a registered investment adviser. The content of this blog post is intended for informational purposes only and is not intended to be investment advice. The views expressed in this blog post are subject to change based on market and other conditions. Some information has been obtained/provided from third party sources and is believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such.