Wealth & Retirement Strategy

For 2026, you can contribute up to $24,500 as an employee deferral, plus 25% of your net self-employment income as an employer contribution, for a combined maximum of $72,000. If you are 50 or older, catch-up contributions add another $8,000, bringing the total to $80,000. A Solo 401(k) also allows Roth contributions and can accept rollovers from other retirement accounts.

A cash balance plan is a type of defined benefit (pension) plan that allows much higher annual contributions than a 401(k), typically $150,000-$300,000+ per year depending on your age. It is ideal for established high-income professionals (physicians, attorneys, business owners) over age 40 who want to aggressively shelter income from taxes. Contributions are tax-deductible, and the plan grows tax-deferred.

High earners who exceed Roth IRA income limits ($168K single / $252K married in 2026) can still contribute by making a non-deductible contribution to a Traditional IRA, then immediately converting it to a Roth IRA. The conversion is tax-free if you have no other pre-tax IRA balances (the pro-rata rule). This gives you tax-free growth and withdrawals in retirement.

Tax-loss harvesting is selling investments at a loss to offset capital gains and up to $3,000 of ordinary income per year. Unused losses carry forward indefinitely. The key is the wash sale rule: you cannot buy a 'substantially identical' security within 30 days before or after the sale. You can buy a similar (but not identical) fund to maintain market exposure while capturing the tax loss.