You’re Doing Great, But You’re Not Done Yet
If you’re maxing out your 401(k) each year, congratulations, you’re ahead of the game. Most people never get there. But for many high-income earners in Springfield, Missouri, the question becomes: What now?
If you’re already hitting the annual contribution limit ($23,000 for 2025, plus a $7,500 catch-up if you’re over 50), you’re probably still earning more than you need to live on. The next step is figuring out how to use that surplus wisely, without letting it sit idle or get eaten up by taxes.
At Evans Wealth Planning, we specialize in helping high earners design financial plans that build freedom beyond retirement accounts. Here’s where to go next once you’ve checked the 401(k) box.
1. Fund an HSA, The Most Tax-Efficient Account You’ll Ever Use
If you’re eligible for a Health Savings Account (HSA), it’s arguably better than a 401(k) from a tax standpoint. HSAs offer:
Tax-deductible contributions
Tax-free growth
Tax-free withdrawals (for qualified medical expenses)
That’s a triple tax advantage.
Even better, you don’t have to spend it right away, you can invest your HSA funds, let them grow, and reimburse yourself years later. For high-income families in Springfield, it’s one of the smartest “hidden retirement accounts” available.
2. Open a Backdoor Roth IRA
Once your income surpasses Roth contribution limits ($161,000 for individuals or $240,000 for married couples filing jointly in 2025), you can’t contribute directly. But there’s a workaround: the backdoor Roth IRA.
Here’s how it works:
Contribute to a traditional IRA (non-deductible).
Convert those funds to a Roth IRA.
Pay taxes only on the growth, not the contribution.
Why do this? Because Roth accounts grow tax-free forever and have no required minimum distributions (RMDs). That means more flexibility and potentially lower taxes in retirement.
We help clients navigate the conversion process carefully to avoid the “pro-rata rule” that can trigger unwanted taxes.
3. Build a Taxable Investment Account
After maxing out retirement and HSA options, it’s time to put your dollars to work in a taxable brokerage account.
This account offers:
Unlimited contributions: no IRS caps.
Flexibility to access funds anytime.
Lower long-term capital gains taxes (compared to ordinary income rates).
You can invest in ETFs, index funds, or even dividend stocks that align with your risk tolerance and goals. While you’ll pay some taxes along the way, smart investment selection and timing can make it incredibly efficient.
At Evans Wealth Planning, we help Springfield professionals design portfolios that blend growth potential with tax-smart withdrawal strategies.
4. Invest in Real Estate, The Right Way
Real estate can be a great complement to your stock portfolio, but only when it fits your broader financial plan.
For many high earners, real estate offers:
Tangible diversification outside of the stock market
Depreciation and deduction benefits
Potential passive income streams
Whether that’s a rental property in the Springfield area or a diversified real estate fund, the key is to analyze cash flow, tax impact, and opportunity cost. Owning property can be powerful, but it shouldn’t replace your long-term investment discipline.
5. Consider Advanced Employer Plan Options
If you’re self-employed or own a small business, you may be able to go beyond the standard 401(k):
Solo 401(k): Contribute as both employee and employer.
Defined benefit plan: Allows much higher contributions (often $100k+ annually) for those with high, stable income.
Deferred compensation plan: For executives wanting to delay income until retirement.
These plans can supercharge your savings while significantly reducing current taxes, but they must be coordinated carefully with your overall plan.
6. Build a Plan for the Money That’s Left
Even after all these strategies, most high earners still have monthly cash flow left over. That’s a good problem to have, but it’s also where many start to drift.
Without a plan, that money tends to disappear into lifestyle creep, home upgrades, or “just because” spending. Instead, channel your excess income into intentional goals:
Future business investments
Education funding
Early retirement savings
Charitable giving strategies
Every dollar should have a job, even if that job is “flexibility.”
The Big Picture: Your 401(k) Is Just the Starting Line
Think of your 401(k) like a foundation, necessary, but not the whole house. Once you’ve built that base, your next moves determine how quickly you’ll reach financial independence.
A well-structured plan balances tax efficiency, liquidity, and long-term growth so you can live well today and retire with confidence tomorrow.