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The Double Roth Max Strategy: How High Earners Can Maximize Tax-Free Retirement Income

By David C. D’Albero, Co-Founder, Strata Capital

There’s a growing tension that many successful executives feel today. You want to maximize Roth contributions for long-term tax-free growth, but you’re also aware of the tax benefits that come from traditional pre-tax savings. It often feels like you have to choose between future benefit and present-day tax relief.

That tradeoff might not be necessary.

For high-income professionals with access to a nonqualified deferred compensation plan, there is a little-known strategy that can unlock the best of both worlds. It is what we call at Strata, the Double Roth Max. This approach lets you maximize your Roth contributions while still reducing your current taxable income, using the tax shelter of your deferred compensation plan.

This is not a beginner tactic. It requires the right plan design and strong cash flow. For executives with complex compensation packages, it can be one of the most powerful retirement strategies available.

Let’s break down how it works.

Step 1: Max Out Your Roth 401(k) Contributions

Start by contributing the full annual limit to your Roth 401(k). In 2025, that was $23,500. If you’re 50 or older, you qualify for an additional $7,500 catch-up contribution, bringing your total to $31,000.

For those between ages 60 and 63, the numbers get even better. Under the Secure Act 2.0 rules, you are eligible for a special catch-up of $11,250. This allows you to contribute up to $34,750 to your Roth 401(k) in 2025.

That is the first layer of the strategy, and it is already powerful on its own.

Step 2: Add After-Tax Contributions to Hit the 401(k) Limit

Next, take advantage of your plan’s after-tax contribution feature. The total 401(k) contribution limit for 2025 was $70,000. This includes both employee and employer contributions.

Once you have hit the Roth 401(k) limit and factored in any employer match, you can fill the remaining gap with after-tax dollars.

Let’s say your employer match is $10,000 and you have already contributed $23,500. That gives you room to contribute another $36,500 in after-tax dollars to reach the $70,000 limit.

Not every plan allows this, so review your plan documents carefully or consult your benefits team.

Step 3: Execute a Mega Backdoor Roth Conversion

Once you make those after-tax contributions, convert them to a Roth account. This can be done either within the plan or by rolling them into a Roth IRA. This converts your after-tax contributions into Roth dollars that can grow and be withdrawn tax free in retirement.

Ideally, this conversion happens quickly to limit any taxable growth.

Used correctly, this step can add another $30,000 to $46,500 to your Roth portfolio, depending on your age and employer match.

Step 4: Shift Your Tax Deduction to Deferred Compensation

Here is the part that sets the Double Roth Max apart.

By focusing on Roth and after-tax contributions, you are giving up the current-year tax deduction that comes with traditional pre-tax 401(k) contributions. That would be a dealbreaker for many.

Instead, shift that tax deduction into your company’s deferred compensation plan. By deferring a portion of your salary into an NQDC plan, you reduce your taxable income in the current year, similar to how a traditional 401(k) works.

In other words:

You are building tax-free Roth income for the future.
You are still getting a tax deduction today.
You maintain control over how and when that deferred income is paid.

This structure supports both short-term efficiency and long-term growth.

What the Numbers Could Look Like

Here’s a hypothetical example for a 61-year-old executive:

$34,750 contributed to the Roth 401(k)
$35,250 contributed after tax and converted via mega backdoor Roth
Total Roth contributions: $70,000
$50,000 deferred into the company’s NQDC plan for a current tax deduction

This structure helps reduce this year’s tax liability while aggressively building tax-free income for retirement.

Who This Strategy Works For

The Double Roth Max works best for professionals who:

Earn well above the IRS income limits for Roth IRA eligibility
Have access to a strong nonqualified deferred compensation plan
Are already maxing out their standard 401(k) contributions
Want more of their wealth in tax-free vehicles
Can manage short-term cash flow while pursuing long-term growth

If you check these boxes, this strategy could dramatically improve your retirement plan.

What to Watch Out For

There are several technical elements that must be coordinated:

Not all plans allow after-tax contributions or in-plan Roth conversions
Timing is important to avoid tax consequences on after-tax growth
NQDC plans vary widely, and each one has its own rules and limitations
Strong cash flow is required to support simultaneous contributions and deferrals

As always, work with a knowledgeable advisor, CPA, and benefits administrator to ensure you are executing this strategy correctly.

The Strategy Behind the Numbers

At this level, retirement planning is not just about maxing out contributions. It is about aligning your compensation structure, tax profile, and investment goals into a coordinated plan.

The Double Roth Max gives high earners a rare opportunity to contribute significantly more into Roth accounts without sacrificing near-term tax efficiency.

That combination is hard to find. When implemented correctly, it can result in a more balanced portfolio, reduced tax drag, and greater control over your future income.

Want the Full Walkthrough?

In my latest video, I break down the full Double Roth Max strategy using real-world numbers and practical guidance.

Watch it here: Give me 2 minutes… I’ll add $100k/yr to your investments

You will learn:

How to structure your contributions
What plan features are required
Where high-income earners can find the most leverage

If you are looking to take your planning to the next level, this is a strategy worth exploring.

How Tax Assets Can Quietly Lower Your Future Tax Bill

By Carmine Coppola, Co-Founder, Strata Capital

One of the biggest misconceptions in financial planning is that all tax strategies need to be reactive. The truth is, some of the most valuable tax moves happen well before the filing deadline. In fact, some begin years in advance.

If you are a high-income professional looking for smarter ways to manage taxes, this is a concept worth understanding. It is called tax asset harvesting, and it has been a foundational part of how we help clients at Strata Capital for over a decade.

In my recent video, I break down what tax assets actually are, how they work, and why they matter for long-term wealth preservation. You can watch the full video here:
Watch: How Tax Assets Can Reduce Your Tax Bill

Here are the core insights from that video and why this might be one of the most underutilized strategies in your portfolio.

What Are Tax Assets?

At a basic level, tax assets are financial resources that can lower your future tax liability. You can think of them like credits or offsets earned by either overpaying taxes or recognizing losses in earlier years. Instead of disappearing, these assets can be carried forward and used strategically in the future.

There are two key types: deferred tax assets and tax credits.

Each operates differently, but both serve one important function. They allow you to keep more of what you have earned without needing to wait until tax season to act.

Deferred Tax Assets: Turning Past Losses into Future Opportunity

A deferred tax asset usually comes into play when you overpay taxes or incur a loss in a particular year. That loss is not wasted. It can often be carried forward to offset future taxable income.

This might include:

Capital losses from investments
Operating losses from a business
Overpayments from earlier tax filings

For example, if you realize a $50,000 capital loss in 2025, you may not be able to use it all immediately. However, you may be able to carry it forward and apply it against future capital gains or even deduct a portion against ordinary income. This gives you the ability to align losses with years when your income is highest, making the tax impact more meaningful.

If you have company stock, a concentrated portfolio, or a significant one-time income event, these assets can be used to help smooth your tax burden over time.

Tax Credits: Dollar-for-Dollar Impact

Tax credits are another form of tax asset. They work differently from deductions. While a deduction reduces the amount of income you pay tax on, a credit reduces the tax owed itself. This is often more impactful for high earners.

Examples of tax credits include:

The Foreign Tax Credit for taxes paid internationally
The R&D Credit for innovation and qualifying business expenses
Credits tied to energy-efficient investments
Various carryforward credits from prior years

The key is not just knowing these credits exist, it is knowing how and when to use them as part of a larger strategy. Credits are often overlooked, especially when tax planning is siloed and not integrated with the rest of your financial picture.

Why High-Income Earners Should Care

Most tax planning focuses on the current year. That is understandable, but it often leaves long-term opportunities untapped. At Strata Capital, we believe in forward-thinking tax strategy. We look for ways to reduce current liabilities while also creating flexibility for future tax years.

Tax asset harvesting fits that vision. It helps clients who:

Experience income volatility due to equity grants or bonuses
Manage legacy assets with large unrealized gains
Own or have sold private businesses
Are preparing for a career transition, IPO, or retirement

In each of these scenarios, there is potential to use tax assets to cushion high-income years or create optionality in low-income years.

Real-World Planning in Action

One client we worked with experienced a large capital gain after selling vested shares. Thanks to capital losses we had harvested in a prior year, we were able to offset a substantial portion of that gain. The result was a significantly lower tax bill at a time when their income was at its peak.

In another case, we carried forward a business operating loss for several years. When the client experienced a strong earnings year after launching a second venture, we used the deferred tax asset to reduce taxable income at exactly the right moment.

These results are not accidental. They require planning, tracking, and the ability to coordinate across income, investment, and tax decisions.

What Often Gets Missed

Tax assets are frequently underutilized because they are misunderstood. Many people forget to record their losses. Others do not realize that credits can carry forward. In some cases, no one is overseeing the full picture and the opportunity is missed entirely.

This is why tax strategy should be a year-round focus, not a once-a-year review.

By identifying and tracking tax assets continuously, you gain more control and avoid year-end surprises. More importantly, you begin to integrate tax planning into your broader wealth-building strategy.

It Is About Coordination, Not Complexity

Sophisticated financial planning is not about using complex tools for their own sake. It is about making sure every part of your financial life is working together.

If you are harvesting investment losses, exercising stock options, managing real estate, or deciding when to take distributions, each of those decisions has a tax impact. That means each decision is also an opportunity to create or use tax assets.

At Strata Capital, we help our clients see those intersections clearly. Tax assets are not just numbers on a spreadsheet. They are tools that, when used intentionally, can unlock real savings and support long-term goals.

Learn the Strategy Behind the Scenes

In my latest video, I walk through the exact approach we use to track and apply tax assets with our clients.

You will learn:

How to distinguish between deferred tax assets and tax credits
How to carry forward losses and apply them strategically
What documentation and timing matter most
How to align your tax strategy with your investment and income plan

Watch now: Unlock the Power of Tax Assets to Lower Your Taxes Legally!

These are strategies that most people never hear about. By understanding how tax assets work and how to use them, you gain a meaningful edge in how you build and protect wealth.

Three Roth IRA Strategies Most High Earners Overlook

By David C. D’Albero, Co-Founder, Strata Capital

For high-income earners, saving for retirement is rarely about lack of discipline. It’s usually about finding the right strategy that aligns with tax rules, compensation complexity, and long-term goals. Roth IRAs offer one of the most tax-advantaged paths to grow wealth, but for many executives, the traditional route is closed off due to income limits.

Here’s the good news: there are still several creative, legal, and strategic ways to build tax-free retirement income using Roth IRAs. I broke these down in a recent video, which you can watch here:

Click here to watch the full video

These aren’t fringe strategies or loopholes. They’re often overlooked because they involve a few extra steps and require more coordination than simply checking a box on your 401(k). That’s exactly why they’re powerful.

Let’s walk through the three most effective Roth IRA strategies high-income earners should be considering right now.

Strategy 1: Mega Backdoor Roth via After-Tax 401(k) Contributions

If your employer’s 401(k) plan allows after-tax contributions and in-service rollovers, you’re sitting on one of the most valuable Roth opportunities available today.

Here’s how it works. You start by maxing out your pre-tax 401(k) contributions. In 2026, the limit is $24,500 if you’re under 50, $32,500 if you’re 50 or older, and $35,750 if you’re between ages 60 to 63 due to a special catch-up provision. Once that’s done, some employer-sponsored plans let you contribute additional after-tax dollars above that limit. The total combined contribution cap (employer and employee) is $72,000 for 2026.

New for 2026: Roth Only Catch-Up Contributions for High Earners

If you earned $150,000 or more in the previous year, any catch-up contributions you make (whether you are age 50 or older or eligible for the expanded “super catch-up”) must now go into a Roth account if your plan offers one.

The real magic happens when those after-tax contributions are rolled into a Roth IRA. This move converts future investment growth into tax-free income during retirement. If your employer permits in-service rollovers, you may be able to move the after-tax dollars out of the plan into a Roth IRA on a recurring basis. That prevents those funds from sitting in a taxable account and lets them grow tax-free instead.

For example, if you contribute an extra $20,000 in after-tax funds and roll that into a Roth IRA each year for five years, you’re potentially setting up $100,000 of principal for decades of tax-free compounding. This is especially useful for corporate professionals already maximizing their traditional retirement savings and looking for new ways to build long-term wealth.

Not every plan offers this, so it’s worth checking your employer’s summary plan description or talking with a financial advisor who understands your specific 401(k) rules.

Strategy 2: Backdoor Roth IRA Contributions

If your income is above the IRS limit for Roth IRA contributions, the backdoor Roth strategy remains one of the cleanest ways to contribute. It’s a two-step process.

First, you make a non-deductible contribution to a traditional IRA. In 2026, that’s $7500 if you’re under 50, or $8600 if you’re over 50. Then, you convert that contribution into a Roth IRA. Since the original contribution was made with after-tax dollars, the conversion should have minimal or no tax impact.

There is one caveat. The IRS applies the pro rata rule across all of your IRAs. If you have other traditional, SEP, or SIMPLE IRA balances that include pre-tax dollars, your conversion will be partly taxable. For example, if you have $50,000 of pre-tax money in a traditional IRA, and you try to convert $7500 of after-tax contributions, the IRS will view that $7500 as a mix of pre-tax and after-tax funds. That changes the tax math quickly.

This strategy works best when you don’t already have money in other IRAs, or if you’ve moved those balances into a 401(k) before doing the backdoor conversion. If that sounds complicated, it can be. This is one of those strategies that should be coordinated with a tax advisor or CPA who can help you navigate the reporting correctly.

When done properly, the backdoor Roth contribution is an elegant way to fund tax-free retirement growth, even for those well above the income limits.

Strategy 3: Opening a Roth IRA for Your Child

For many high-income families, legacy planning isn’t just about estate taxes and asset transfers. It’s about giving your children a foundation in financial literacy and long-term wealth building.

One strategy that rarely gets the attention it deserves is opening a Roth IRA for your child. Yes, it’s allowed – as long as your child has earned income.

Earned income can come from traditional jobs like working at a family business or summer employment, or even non-traditional income like babysitting, tutoring, or lawn care, as long as it’s documented. The contribution limit is the lesser of your child’s earned income or the annual IRA limit.

Let’s say your 15-year-old earns $2,000 mowing lawns. That $2,000 can be contributed into a Roth IRA. They may not realize it now, but that one deposit has the potential to grow into more than $100,000 by retirement, assuming a 7 percent annual return. That’s with no further contributions.

If they contribute just $2,000 annually for five years starting at age 15, the long-term tax-free growth potential is extraordinary. You’re helping them build wealth, yes, but you’re also planting seeds of financial education that last a lifetime.

Many parents and grandparents choose to fund these contributions as gifts. That’s completely fine, as long as the child has verifiable earned income to justify the contribution. It can be a powerful way to create generational financial momentum.

Roth Strategies in a Shifting Tax Environment

It’s important to remember that tax rules are not permanent. The Roth IRA income limits, contribution thresholds, and rollover rules are all subject to change. With multiple pieces of tax legislation scheduled to sunset or shift by 2026 and beyond, there is some urgency around making the most of what’s currently available.

These Roth strategies don’t require any speculation or exotic investment vehicles. They require coordination, timing, and a clear understanding of your income structure. That’s where working with a professional advisor makes a difference. For high-income professionals already handling stock compensation, deferred compensation, restricted shares, and other corporate benefits, weaving these Roth tools into your larger planning can produce tremendous value over time.

Getting It Right

None of these strategies are inherently complicated, but the details matter. Pro rata rules, in-service rollover timing, and IRA aggregation rules can all trip up even the most financially savvy individual. The cost of making a mistake may be unexpected taxes, lost opportunity, or unnecessary complexity.

That’s why we place so much emphasis at Strata Capital on education and coordination. These aren’t cookie-cutter solutions. They’re well-designed plays in a broader financial game plan.

If you’re interested in implementing any of these Roth strategies or just want help figuring out what fits best into your plan, we’d be happy to walk through it with you.

Roth accounts are powerful, flexible, and often underused. That doesn’t have to be the case for you.

A Smarter Way to Unlock the $40K SALT Deduction

By Carmine Coppola, Co-Founder, Strata Capital

If you’re a high-income earner living in a high-tax state like New York, New Jersey, or California, the new state and local tax (SALT) deduction changes for 2026 may feel like a rare financial opportunity. For many executives, this could be one of the most impactful tax strategy shifts in recent years. That is, if it’s used correctly.

We recently shared a video walking through how this works using real client examples.

You can watch it here

Let’s start with what’s changed. Under the updated tax law running through 2030, individuals and couples with Modified Adjusted Gross Income (MAGI) under $500,000 now qualify for the full $40,000 SALT deduction. Once income passes that threshold, the deduction begins to phase out. By the time income reaches $600,000, it drops back down to the $10,000 cap.

That $100,000 income range opens a narrow, but powerful, window of opportunity. Within it lies the potential to reduce your tax bill while investing more strategically for the future.

Here’s the challenge many executives face. Your income often places you just above that $500,000 line. You’ve likely maxed out your 401(k), your bonus structure pushes you higher, and your tax bill feels like it’s always creeping up. The solution may not require earning less. It may come down to using smarter tools to reduce taxable income and unlock the full benefit of the new SALT rules.

That’s where deferred compensation plans come into play.

Understanding the SALT Deduction Window

Before diving into strategy, let’s talk about why this deduction matters.

The SALT deduction was originally capped at $10,000 under the Tax Cuts and Jobs Act. That change hit high-income earners in high-tax states especially hard. Now, with the new law, significant deductibility has been restored for those under the $500,000 threshold. For every dollar above that, the deduction phases out by 30 cents until it disappears again at $600,000.

Let’s look at three scenarios to illustrate what this means in real dollars:

A couple earning $625,000 receives only the standard $10,000 deduction.
A couple earning $550,000 qualifies for a $25,000 deduction.
A couple earning $493,000 qualifies for the full $40,000 deduction.

The couple at $493,000 ends up with a taxable income that is $160,000 lower than the couple earning $625,000. That’s despite the fact their gross incomes differ by only $132,000. Strategic income positioning can make a significant difference.

Why Deferred Compensation Matters

Reducing income might sound counterintuitive for someone who’s worked hard to reach their current earning level. No one wants to feel like they’re taking home less. The good news is you’re not giving up income. You’re redirecting it into a long-term strategy that reduces your current tax liability while building your future wealth.

A deferred compensation plan allows you to set aside a portion of your income into a tax-deferred investment account. This is often done using your annual bonus or a portion of your base salary. Unlike a 401(k), there’s no IRS limit to how much you can defer. If your employer offers a nonqualified deferred compensation (NQDC) plan, this can be a powerful tool.

In a recent client case, Frank and Maria had a combined income of $600,000. After maxing out their 401(k)s, their MAGI dropped to $553,000. That was still above the $500,000 cutoff, which limited their SALT deduction.

To bring their income below the threshold, Frank deferred $60,000 of his $100,000 bonus into his employer’s deferred compensation plan. His company also provided a 6 percent match. This move lowered their MAGI to $493,000, allowing them to unlock the full SALT deduction.

Here’s how the numbers changed:

Gross income dropped from $553,000 to $493,000.
Itemized deductions increased by $15,000.
Taxable income decreased by $74,000.
Federal income taxes dropped by about $22,000.
Their marginal tax bracket shifted from 35 percent to 32 percent.

And remember, that $60,000 wasn’t lost. It was invested for their future in a tax-advantaged environment.

The Overlap of Timing, Strategy, and Tax Policy

It’s not often that tax policy and compensation planning align this clearly. Income management and deduction optimization are typically considered separately. When used together, they create rare financial leverage.

Not every company offers a deferred compensation plan. Among those that do, the features can vary significantly. Some plans provide flexibility around deferral amounts, investment options, or payout schedules. Understanding how to use the plan in the context of your broader financial goals is critical.

We frequently hear executives say they intend to “deal with deferred comp later.” Others worry about deferring income in a volatile market or question whether it’s too complex. These are valid concerns. At the same time, avoiding the conversation altogether often leads to missed opportunity.

A lot of executives are already in motion. Bonuses are paid, elections are made, and the tax year ticks by quickly. The key is to plan ahead. Once a tax year closes, many of these decisions become locked in.

The Strategy Beyond the Numbers

We can talk numbers all day, but many executives are looking for something more than just math. They want clarity, not confusion. They want to feel in control of their financial picture without needing a second job to manage it.

This is especially true for clients who are juggling career pressure, family obligations, and high-level responsibilities. They want a trusted advisor to help them see the whole board, not just move one piece at a time.

Most high earners already feel the pressure to optimize their wealth. What they don’t need is more complexity for complexity’s sake. The goal is not to master tax code overnight. It’s to know what levers are available, and how to use them effectively.

Is This Strategy a Fit?

This type of planning is most effective for those who:

Earn over $500,000 and live in a high-tax state
Expect to maintain or grow their income in the coming years
Have already maxed out traditional retirement contributions
Work for an employer that offers a deferred compensation plan

If that sounds like your situation, now may be the time to explore how deferred compensation fits into your broader strategy. The rules are in your favor, but only for a limited window. The current SALT deduction structure runs through 2030. Beyond that, future legislation could shift the playing field again.

Aligning Income Strategy with Tax Efficiency

Wealth is not just about accumulation. It’s about alignment. Your compensation structure, your tax strategy, and your investment plan should work together. The updated SALT deduction rule creates an opportunity for high earners to reframe how they think about income and taxes.

By combining deferred compensation with proactive tax planning, you can invest more into your future and reduce your current tax burden. The strategy isn’t about complexity. It’s about clarity and confidence.

Stop Leaving Money on the Table: The High-Income Executive’s Guide to Open Enrollment

By David C. D’Albero, Co-Founder, Strata Capital

Each fall, thousands of corporate professionals breeze through their open enrollment packets with all the enthusiasm of someone renewing a software license. Click, confirm, move on.

This is understandable. The process can feel like a bureaucratic blur of HR-speak, fine print, and boxes to check. Still, within that window lies an extraordinary opportunity to shape your financial future. For corporate professionals with complex compensation structures and high incomes, open enrollment is not just administrative. It is strategic.

To walk through this step by step, watch the full video here

Once that window closes, your decisions are locked in for the year. So it is worth slowing down, asking the right questions, and aligning each choice with a bigger picture.

At Strata Capital, we help corporate professionals navigate the nuanced world of company benefits every day. Here is a closer look at how to make open enrollment work harder for you.

Rethinking Your Health Insurance Strategy

For most people, health insurance is the first decision on the list. Not all plans are created equal, and the best choice often comes down to more than just monthly premiums.

PPOs, or Preferred Provider Organizations, tend to be the most flexible, allowing access to specialists without referrals and out-of-network coverage. They are often best for families who frequently access healthcare and want options without roadblocks, although that flexibility comes at a higher premium.

HMOs, or Health Maintenance Organizations, generally offer the lowest monthly costs, but with tighter rules around provider networks and referrals. They can work well for individuals who prefer a streamlined system and do not need broad access.

High Deductible Health Plans are growing in popularity, especially for those with strong cash flow and minimal expected medical needs. The main draw is access to a Health Savings Account, which allows for triple tax advantages: deductible contributions, tax-deferred growth, and tax-free withdrawals for medical expenses.

For those focused on long-term planning, the HSA can quietly become a stealth retirement asset. After age 65, withdrawals can be used for any purpose and taxed like a traditional IRA.

EPOs and POS plans offer hybrid models with varying levels of flexibility and coverage. These deserve a closer look if neither the PPO nor HMO options feel like the right fit.

The Underappreciated Power of the HSA

HSAs often get overlooked, which is unfortunate considering how versatile they are. In addition to the triple tax benefits, HSAs are portable, rollover annually, and do not expire. For high earners already maxing out retirement accounts, an HSA provides another avenue for tax-advantaged growth.

This strategy tends to work best for those who are relatively healthy, have a financial buffer to cover the higher deductible, and are comfortable viewing the HSA not just as a spending account but as a long-term investment vehicle.

Going Beyond the Basic 401(k)

Most corporate executives are familiar with the traditional pre-tax 401(k) and Roth 401(k) options. The former offers a tax deduction today with taxable withdrawals in retirement. The latter provides no upfront tax break, but future withdrawals come out tax-free.

The third option, often hidden in plain sight, is the after-tax contribution bucket. While it does not reduce current taxable income, it unlocks one of the most valuable wealth-building strategies available to high earners: the Mega Backdoor Roth.

If your plan allows for after-tax contributions and in-service conversions, this approach lets you contribute significantly more than the standard limit and roll those funds into a Roth account. This creates a sizable pool of tax-free income in the future. It requires careful implementation and coordination with your employer’s plan rules, but for those who qualify, it is a strategy worth exploring.

Be Intentional About How Your 401(k) is Invested

Too many executives default into a target-date fund and never revisit the allocation again. While these funds are simple and hands-off, they are built for the average investor. High-income professionals with equity compensation and large brokerage accounts may need a more tailored approach.

In early career stages, heavier stock allocations may be appropriate, provided the volatility is something you can manage. More importantly, executives need to be mindful of how much exposure they already have to their company’s performance. Between salary, bonuses, RSUs, and options, it is easy to become over-concentrated.

When evaluating investment options, look closely at underlying fees. Many plans offer low-cost index funds right alongside more expensive actively managed ones. While both types of funds can serve different purposes, the difference in fees over time can quietly erode performance.

Deferred Compensation: Misunderstood and Incredibly Valuable

If your company offers a non-qualified deferred compensation plan, it is worth understanding how it works. These plans allow you to defer a portion of your salary or bonus into future years. This reduces current taxable income and allows you to time distributions in lower-income years, such as retirement.

Deferred compensation is not without risk. These funds remain tied to your employer’s balance sheet, and payouts are subject to the company’s financial health. You will also need to be strategic about how and when you take distributions, and how those payments coordinate with your other retirement income streams.

Done well, deferred compensation plans can help smooth your income and tax liability over time. They should be integrated into your broader tax, investment, and estate plan to maximize the benefit.

Stock Compensation: Payout Elections Carry Weight

Restricted Stock Units are a central part of many executive packages. When RSUs vest, the value becomes taxable as ordinary income. This happens whether the shares are sold or not, which can create surprise tax liabilities for the unprepared.

Companies usually give several payout options: take the shares, take cash, or opt for a blend. The right choice depends on your goals, liquidity needs, and existing exposure to company stock.

Too often, RSU elections are set and forgotten, only to create problems when someone retires and discovers their company’s plan does not allow share payouts post-employment. Aligning these elections with your broader financial plan can help avoid costly mistakes.

Life Insurance: Coverage Gaps Are Common

Most executives carry group life insurance through their employer, but that coverage often caps out at a multiple of salary. For high earners with families to support, mortgages to cover, or legacy goals, this may not be sufficient.

Supplemental private coverage, such as a term life policy, is usually affordable and portable. Rather than relying solely on employer coverage, consider building a plan that aligns with your full financial picture and is not reliant on your employment at your company.

Disability Insurance: The Overlooked Weak Spot

Disability insurance often gets less attention than life insurance, yet the risk of becoming unable to work due to illness or injury is greater than many realize. Group plans typically cover 40 to 60 percent of income, often excluding bonuses or equity compensation. Worse, benefits are taxable when the employer pays the premium.

Some companies offer supplemental disability coverage where the employee pays the premium with after-tax dollars. In this case, benefits received would be tax-free. This small change can significantly increase the value of the protection.

High-income professionals should also be aware of policy caps. A disability plan that replaces 40 percent of income may sound acceptable until it stops at a fifteen thousand dollar monthly benefit while income exceeds seven hundred fifty thousand annually. Make sure to check your plan’s cap. Addressing this gap early can make all the difference.

Supplemental Benefits: A Little Cushion Can Go a Long Way

Optional benefits like critical illness and hospital indemnity coverage may seem unnecessary at first glance. For the right individual, though, they can offer added financial protection during difficult moments.

Critical illness policies pay a lump sum upon diagnosis of a covered condition, which can help with deductibles, out-of-network care, or everyday expenses. Hospital indemnity policies provide cash for each day of hospital admission. These are not a substitute for health insurance, but they can soften the financial blow during a major event.

Some employers also offer legal services plans that cover basic estate planning. For those who have not updated their will or need a healthcare proxy, this benefit is worth revisiting.

Do Not Forget the Final Steps

Before wrapping up enrollment, take a few minutes to review beneficiary designations across retirement plans, insurance policies, and deferred compensation. Changes in marital status, children aging out of coverage, or the passing of a loved one are all reasons to review your elections.

Missing the open enrollment deadline locks in your choices for another year unless a qualifying life event occurs. That means whatever decisions are made now will echo through your finances for the next twelve months and potentially longer.

Open Enrollment Deserves More Than a Quick Click

For busy executives, it is easy to treat open enrollment as another checkbox. That approach may come with significant cost through missed tax opportunities, underutilized investment strategies, or unnecessary risk.

This is one of the few windows each year to realign your benefits with your broader financial goals. A thoughtful review now can save taxes later, create flexibility in retirement, and reduce stress for your family in the future.

At Strata Capital, we help high-income professionals turn complex compensation structures into coordinated strategies. Our goal is to create a higher standard of financial service so executives like you can stop guessing and start optimizing.

Disclosures & Compliance Notes

This content is provided for educational purposes only and should not be construed as investment, tax, or legal advice. All investments carry risk, and past performance is not indicative of future results. The examples provided are hypothetical and do not guarantee any specific outcome. Before making any financial decision, please consult with a licensed professional who understands your unique financial situation.

Turn Your HSA Into a 6 or 7-Figure Retirement Boost

By Carmine Coppola, Co-Founder, Strata Capital

For many high-income professionals, building and protecting wealth is not just about income. It’s about strategy. That means making smart use of every financial lever available, especially the ones most people overlook.

One of the most underutilized and misunderstood financial tools is the Health Savings Account, or HSA. The name makes it sound like it’s just a place to cover doctor visits and prescriptions. In reality, when used strategically, an HSA can become a long-term, tax-efficient investment vehicle that supports your retirement goals.

Let’s take a closer look at how to transform your HSA into a 6 figure retirement account.

Watch the full breakdown on YouTube here

The HSA’s Triple Tax Advantage

An HSA is the only investment account that delivers a triple tax benefit.

Contributions are tax-deductible.
Investments grow tax-free.
Withdrawals for qualified medical expenses are also tax-free.

This kind of tax treatment is rare. Traditional 401(k)s and IRAs offer tax-deferred growth, but you’ll pay taxes when you withdraw. Roth IRAs give you tax-free withdrawals, but you contribute after-tax dollars and face income limits. The HSA combines the best of both worlds. When used correctly, it may be the most efficient tool in your financial toolkit.

Where Most People Get It Wrong

Most HSA holders swipe the card the moment they get a medical bill. The money leaves the account. The opportunity for compounding disappears. The account becomes more of a spending tool than an investment vehicle.

The smarter move is to pay those medical bills out of pocket and leave the HSA invested. Let the money grow tax-free for as long as possible. When you need it later, reimburse yourself using the receipts you saved.

You can pay yourself back for qualified medical expenses any time in the future. Even if it’s 10, 20, or 30 years later. As long as you have the documentation, the IRS allows you to withdraw those funds tax-free.

In effect, your HSA becomes a tax-free reimbursement vault.

How Big Can It Get?

Let’s run the numbers.

If you’re 35 years old and contribute the maximum to a family HSA plan every year, plus take advantage of a $1,000 spousal catch-up contribution when you and your spouse reach 55, and invest that balance with a 7 percent average annual return, your HSA could grow to nearly $1 million by the time you reach age 65.

Here are the 2025 contribution limits:

$4,300 for individuals
$8,550 for families
$1,000 catch-up per spouse age 55 or older

One opportunity many couples miss is the spousal catch-up after age 55. Your spouse can open a separate HSA to make their own $1,000 contribution, even if you’re already contributing the family maximum through your employer. Over time, this can add up to tens of thousands in additional tax-free growth.

The key is to treat your HSA like an investment account. Max it out, invest it wisely, and give it time to grow.

Important Note for Residents of California and New Jersey

While HSAs offer generous tax advantages at the federal level, not every state treats them the same way. In California and New Jersey, HSA earnings are taxed at the state level. These states also don’t allow a deduction for HSA contributions on your state return.

That doesn’t mean the HSA isn’t still a valuable tool. The federal tax advantages remain. However, it’s a detail you should be aware of when building your overall strategy.

What You Can Use Your HSA For Later in Life

Once you reach retirement age, your HSA becomes even more valuable. You can use it tax-free for a wide range of healthcare-related expenses, including:

Medicare premiums (Parts B, C, and D)
Long-term care insurance premiums
Dental and vision care
Hearing aids
In-home assistance
Medical equipment
Prescription medications

After age 65, if you use HSA funds for non-medical expenses, there is no penalty. You’ll simply pay ordinary income tax, similar to a traditional IRA.

This flexibility makes the HSA a powerful addition to your retirement income plan. It can serve as a dedicated health fund, a source of tax-free reimbursements, and a smart cash-flow buffer in retirement.

The Smartest Way to Use Your HSA

Here’s the four-part strategy we recommend for corporate professionals:

Max out your HSA contributions every year.
Treat it like you would your 401(k). Include it in your annual savings plan.
Invest the balance.
Don’t let it sit in cash. Choose a long-term investment allocation that fits your goals.
Pay current medical expenses out of pocket.
Keep digital records or scanned receipts. These are your future reimbursement opportunities.
Reimburse yourself later.
Use those receipts in retirement or at a strategic time to withdraw funds tax-free.

This approach gives you control, tax efficiency, and long-term growth. Few other accounts offer this much flexibility.

Why This Strategy Matters

Corporate professionals face unique financial complexity. Between equity comp, deferred bonuses, rising tax exposure, and increasing healthcare costs, choosing the right savings vehicle matters.

The HSA is often overlooked. That’s a mistake. Most corporate professionals already max out their 401(k)s and often use backdoor Roth strategies. Once those options are full, the HSA becomes one of the few remaining accounts that can grow tax-free.

This is also one of the only ways to prepare for retirement healthcare costs without adding new tax burdens. Used properly, the HSA can help you protect your income today and reduce your expenses in retirement.

Is Your HSA Working for You?

There’s a difference between having an HSA and using it well. If your HSA is sitting in cash or being spent year after year, you’re not maximizing its potential.

A well-managed HSA can be one of the most effective parts of your retirement income plan. It can also reduce your taxable income and give you access to future tax-free income when you may need it most.

At Strata Capital, we specialize in helping high-level professionals look beyond the surface. Our clients don’t settle for standard advice. They expect thoughtful, proactive strategies that match the complexity of their financial lives. That includes a smarter approach to accounts like the HSA.

If you’re unsure whether your HSA strategy is aligned with your long-term goals, let’s talk.