First: this is a good problem
According to the IRS, the employee contribution limit for a 401(k) is $24,500 in 2026, with an additional $8,000 catch-up if you’re 50 or older — and a higher $11,250 catch-up for ages 60 through 63. If you’ve filled all of that, you’ve done the thing most people never get to. The question stops being “am I saving enough?” and becomes “where does the next dollar do its best work?”
That’s a genuinely different question, and the honest answer is: it depends on your taxes, your timeline, and what you want the money to do. What follows is the map I walk through with clients — not a ranking, because the right order isn’t the same for everyone.
The usual suspects, in plain English
An IRA is typically the first stop if you’re eligible — though at higher incomes, deductibility and Roth eligibility phase out, which is exactly the kind of detail your CPA should confirm before you move money.
An HSA, if you’re on a qualifying high-deductible health plan, is often described as the most tax-favored account in the code — and unused balances can ride along into retirement for medical costs.
A taxable brokerage account has no contribution limit and full flexibility — you can invest in almost anything and sell whenever you choose. The trade is that dividends and realized gains are generally taxed along the way.
And then there are the two insurance-based options many high earners never hear explained straight: a properly structured cash-value life insurance policy, and a deferred fixed annuity. Neither has a 401(k)-style IRS contribution cap, and both generally grow tax-deferred under current law — with real trade-offs I’d rather show you than gloss over.
Where the next dollar can go
Side by side, the way I’d sketch it on paper with you:
| Option | Tax treatment | Contribution limit | Access | Built-in protection |
|---|---|---|---|---|
| IRA (traditional or Roth) | Tax-deferred or tax-free growth, rules vary | IRS annual limit; income phase-outs apply | Retirement-age rules, with exceptions | None — it’s an account, not insurance |
| HSA (with qualifying plan) | Often described as triple tax-advantaged | IRS annual limit | Anytime for qualified medical costs | None |
| Taxable brokerage | Dividends and gains generally taxed as you go | None | Sell anytime | None |
| Cash-value life policy | Tax-advantaged growth inside IRS funding limits | No IRS cap; sized by the policy design | Loans and withdrawals — structure matters | Death benefit + floors on credited interest |
| Deferred fixed annuity | Tax-deferred growth | No IRS cap on nonqualified money | Surrender schedule early on; income later | Principal protection from market loss |
Where cash-value life insurance fits — and where it doesn’t
The Insurance Information Institute notes that permanent policies build cash value you can access during your lifetime under certain conditions — and the accumulation-focused designs I work with are funded deliberately toward the IRS limits so more of each dollar builds value instead of buying maximum death benefit. There’s no 401(k)-style contribution cap, but there IS an IRS line (the modified-endowment rules) that a properly built policy is designed to respect.
Where it doesn’t fit: if you haven’t maxed the accounts above, if you’d struggle to fund it consistently, or if you might need every dollar back in the first years. I wrote a whole guide on who should NOT use the cash-value strategy — the honest disqualifiers — and I’d rather lose the sale than skip that conversation.
What about a fixed annuity?
FINRA describes annuities as contracts where the insurer agrees to make payments to you, with fixed annuities crediting a set interest rate. For a high earner, the draw is simple: nonqualified dollars generally grow tax-deferred with principal protected from market loss, and later the balance can turn into income. The trade is liquidity — surrender schedules in the early years are real, and I show them before anything else.
How I’d walk through it with you
Bring your situation; I’ll bring the side-by-side. A personalized illustration shows how a properly structured policy or annuity would work on your own numbers — costs, floors, access, all of it — and your CPA confirms the tax fit. If the honest answer is “just use the brokerage,” I’ll say that. Education first; the decision stays yours.
Educational only — not tax or investment advice; please consult your CPA before moving money. IRA and HSA rules involve income and eligibility limits this guide doesn’t cover. Cash-value growth uses caps and floors; figures are illustrative and not guaranteed.
Sources
About the author
Ken Kaneversky is a licensed independent insurance agent (NPN #22128544) in St. George, Utah — a U.S. Army veteran and cancer survivor licensed in 10 states: UT, IN, NV, ID, WY, SD, HI, CA, AK, and TX. He works with A-rated carriers and gives every family the same thing: a personalized illustration, not a sales pitch. Read Ken’s story