Retirement account contribution strategies are not just for middle-income households. For high-net-worth investors, maximizing tax-advantaged retirement savings is crucial in long-term wealth preservation and estate planning. The 2025 One Big Beautiful Bill Act (OBBBA) introduced some modest changes, but the final version did not include many rumored retirement updates. Understanding what did and did not change is key to forming an effective contribution strategy.

Why retirement accounts still matter when you're wealthy

Even with substantial assets, deferring or avoiding taxes matters. Retirement accounts like IRAs and 401(k)s offer the rare opportunity to achieve both. While contribution limits may seem modest relative to overall wealth, their compounding tax benefits add up when deployed strategically across multiple account types.

The value for high-net-worth investors is not just about growing assets. It is also about reducing current-year taxable income, preserving wealth across generations, and retaining flexibility in future estate and tax planning.

2025 contribution limits

Here are the updated contribution limits under IRS guidance for 2025:

401(k), 403(b), and 457(b) plans : $23,500 per employee, with an additional $7,500 catch-up for those age 50 and older $11,250 for ages 60–63 ("super catch-up")

Traditional and Roth IRAs : $7,000 for those under 50, or $8,000 with catch-up contributions

SEP IRA : The lesser of 25 percent of compensation up to $70,000.

SIMPLE IRA : $16,500 for under 50. Catch up $3,500 for 50–59. For ages 60–63, the catch-up limit increases to $5,250.

These limits are indexed for inflation. High earners with access to multiple plans can often contribute across several account types to maximize tax efficiency.

What OBBBA changed

The final version of the OBBBA did not include many of the retirement reforms initially floated. There are three provisions relevant to retirement and tax planning:

First, for tax years 2025 through 2028, individuals age 65 and older receive an additional $6,000 standard deduction. For married couples where at least one spouse is 65 or older, the added deduction is $12,000. This deduction phases out at $75,000 of modified AGI for singles and $150,000 for joint filers.

Second, the basic exclusion amount for federal estate and gift tax increases to $15 million per person beginning in 2026. This amount will be indexed for inflation from the 2025 base year.

Third, the Treasury Department has been directed to study Roth IRAs with large balances and consider future rules related to required minimum distributions, but no changes have been enacted yet.

What didn’t change under OBBBA

While the OBBBA brought about several changes to financial regulations, certain key provisions remained consistent, including the contribution limits and RMD rules for retirement accounts. Here’s what didn’t change:

• Contribution limits for IRAs, 401(k)s, or other retirement plans
• Required minimum distribution (RMD) rules
• Roth IRA income limits or conversion rules
• Rules governing 529-to-Roth rollovers
• Rules for mega backdoor Roth contributions

These provisions continue to offer valuable planning opportunities for affluent investors.

Maximize every channel: a layered approach

Wealthy investors often have access to more than one retirement account. Coordinating these layers can significantly boost total contributions while optimizing tax treatment.

Start with employee deferrals

Max out elective deferrals to your 401(k) or other qualified plan. The catch-up contribution is especially valuable for those over 50.

Use the backdoor Roth IRA strategy

If your income exceeds the threshold for Roth IRA contributions, consider contributing to a nondeductible traditional IRA, then converting it to a Roth IRA.

Implement a mega backdoor Roth if available

This strategy can significantly boost Roth savings for high earners with access to after-tax 401(k) contributions. If your employer plan permits in-plan conversions or rollovers to a Roth IRA, you may be able to contribute up to $70,000 across all sources if you are under age 50.

If you are  50 to 59, you are eligible for an additional $7,500 in catch-up contributions, for a total of $31,000 in pre-tax and/or Roth contributions and a total of $77,500, including employer match and after-tax contributions.

If you are  60 to 63, you are eligible for a higher catch-up contribution limit of $11,250 in 2025, for a total of $34,750 in pre-tax and/or Roth contributions and a total of $81,250, including all sources (elective deferrals, employer match, after-tax, and catch-up).  

Max out SEP or solo 401(k) contributions if self-employed

Depending on compensation, business owners or freelance employees can contribute up to $70,000 in 2025 via a SEP IRA or solo 401(k). Those over 50 may be eligible for additional catch-up contributions through a solo 401(k).

Don’t overlook the spousal IRA

Even if a spouse does not earn income, they may still qualify for a spousal IRA if the other spouse has earned income. This allows for an additional $7,000 or $8,000 in tax-deferred or Roth savings each year.

Align contributions with income patterns

In high-income years, prioritize tax-deferred contributions to reduce current liability. In lower-income years, Roth conversions should be considered to take advantage of temporarily lower tax brackets.

High earners with variable income should work with their advisor to time contributions and conversions to minimize taxes and maximize long-term growth.

Estate planning considerations

With the OBBBA increasing the lifetime estate and gift tax exclusion to $15 million per person starting in 2026, there is an incentive to integrate retirement savings with broader estate planning goals. Roth IRAs, in particular, are powerful tools for tax-free intergenerational wealth transfer.

Unlike traditional IRAs, Roth IRAs do not require lifetime RMDs. Beneficiaries can withdraw income-tax-free funds over ten years, making them ideal for passing on tax-efficient assets.

Other recent changes not in OBBBA

One crucial update, not part of the OBBBA but enacted under the SECURE 2.0 Act of 2022, eliminated required minimum distributions for Roth 401(k) accounts beginning in 2024. This change aligns Roth 401(k)s with Roth IRAs, making them more attractive for long-term, tax-free accumulation.

This rule is significant for high-net-worth investors looking to optimize the tax efficiency of their retirement assets.

Beneficiaries of inherited Roth accounts must still take RMDs. Depending on specific regulations, they are required to distribute inherited Roth 401(k)s based on their life expectancy or the 10-year rule. This is an important consideration for estate planning involving Roth accounts.

What to do next

While the OBBBA made fewer changes than expected, it didn’t diminish the value of retirement planning for high-net-worth individuals. Tax efficiency is still a critical driver of long-term wealth preservation. Use this period of legislative stability to:

• Maximize contributions to all eligible retirement accounts
• Strategically use Roth conversions when appropriate
• Implement backdoor and mega backdoor Roth strategies when available
• Take advantage of the senior deduction if you qualify
• Align your retirement strategy with estate planning goals

Legislation may change again in the future. For now, a smart contribution strategy using today’s rules can help preserve more of your wealth for retirement and beyond.

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