Maxing out a 401(k) is one of the most reliable ways to build wealth for retirement. This workplace account lets you make pre-tax contributions to a retirement plan, and in many cases your contributions also unlock matching funds from your employer. For 2026, employees can contribute up to $24,500, up from $23,500 in 2025. Those 50 and older can contribute even more through catch-up provisions.
Even so, many people who max out their 401(k) are unsure what to do with additional savings. If you have a maxed-out account at work and you’re trying to figure out your next move, here are seven options worth considering.
1. A fully-funded emergency fund
If you don’t already have an emergency fund in a high-yield savings account, building one should be your top priority alongside your 401(k) contributions.
A solid emergency fund generally holds three to six months of living expenses, though you may want more if you are the sole breadwinner in your household, your job is unstable, or you have ongoing health concerns. The cushion exists to protect you from financial disaster when things go wrong. It covers surprise costs, and if you lose your job or fall ill, it can keep the mortgage paid and the bills current without forcing you to raid your retirement accounts.
Early withdrawals from a 401(k) come with a 10% penalty plus ordinary income taxes. Avoiding that outcome alone makes a well-funded emergency reserve one of the highest-return financial decisions you can make.
2. Debt payoff
Carrying debt doesn’t mean you should ignore other financial goals, but the type of debt you hold shapes the right strategy. High-interest debt from credit cards, medical bills, or personal loans deserves aggressive repayment. The return on eliminating that debt is effectively guaranteed: every dollar you pay down stops generating expensive interest charges you would otherwise pay for months or years.
Lower-interest debt is a different calculation. Student loans and mortgages are structured for long repayment timelines, and their interest is often tax-deductible depending on your income and filing status. When the after-tax cost of that debt is modest, directing extra cash into the stock market can produce a better long-run result than accelerating payoff. The key is comparing your loan’s effective interest rate against a realistic expected investment return, then choosing accordingly.
3. A traditional or Roth IRA
A 401(k) is not the only account that offers tax-advantaged retirement savings. Depending on your income, you may also be eligible to contribute to a traditional or Roth IRA. The annual IRA contribution limit for 2026 is $7,500, up from $7,000 in 2025. Savers aged 50 and older can contribute an additional $1,100 as a catch-up amount under SECURE 2.0’s cost-of-living adjustment.
A traditional IRA delivers tax benefits similar to a 401(k): contributions may be deductible and growth is tax-deferred. The tradeoff is that there is no employer match. The upside is full flexibility: you can open an IRA with any brokerage you choose and invest in nearly anything, from individual stocks to mutual funds to gold or crypto with the right provider. A 401(k) typically limits you to a small menu of mutual funds or ETFs, so the IRA opens up considerably more options.
A Roth IRA works differently. Contributions are made with after-tax dollars, so there is no upfront deduction. In exchange, qualified withdrawals in retirement are completely tax-free. For 2026, the Roth IRA income phase-out range for single filers runs from $153,000 to $168,000, and for married couples filing jointly the phase-out range is $242,000 to $252,000. High earners above those thresholds can still access Roth benefits through a backdoor Roth conversion, which involves contributing to a traditional IRA and then converting those funds to a Roth.
Both account types share one combined annual contribution limit, which sits well below the 401(k) ceiling. Still, the additional tax diversification they provide is worth pursuing when your income allows it.
4. A health savings account (HSA)
If you are enrolled in a qualifying high-deductible health plan, you have access to one of the most tax-efficient vehicles in personal finance: a Health Savings Account. Many financial planners argue that HSAs deserve priority even ahead of maxing out a 401(k) once you have captured your full employer match.
The reason is the HSA’s triple tax advantage. Contributions go in pre-tax, the money grows tax-free, and withdrawals are tax-free when used for qualifying medical expenses. No other account offers all three benefits simultaneously. A 401(k) and a traditional IRA both require you to choose between a tax break now or a tax break later. An HSA delivers both. In 2026, you can contribute up to $4,400 with self-only HDHP coverage, or $8,750 with family coverage. Those 55 and older can contribute an additional $1,000.
If you stay healthy and don’t face large medical bills, the account still works in your favor. After age 65, you can withdraw HSA funds for any purpose without penalty. Those non-medical distributions are taxed at ordinary income rates, making the account functionally similar to a traditional IRA for general use. Given that healthcare is one of the largest costs retirees face, the HSA’s flexibility makes it a powerful addition to any retirement savings plan.
5. Saving for other financial goals
Retirement accounts are not the only place your extra savings can do meaningful work. Depending on where you are in life, you may want to direct money toward a home down payment, a future vehicle purchase, or a major trip. These goals are legitimate uses of capital, and structuring your savings for them is worth the effort.
For goals a few months to a few years away, a high-yield savings account or a Certificate of Deposit can keep your money accessible while earning a return. For longer-horizon goals like funding a child’s college education, a 529 plan provides tax-advantaged growth specifically designed for educational expenses. The key is matching the account type to the timeline: the longer you have, the more you can afford to invest rather than simply save.
6. A taxable brokerage account
Once you have maximized your tax-advantaged options, a taxable brokerage account is a natural next destination for additional savings. These accounts carry no special tax deductions and no tax-free withdrawals, but they come with a key advantage: flexibility. There are no income limits, no contribution caps, and no penalties for withdrawing your money at any time.
The tax treatment is also more favorable than many people expect. Assets held for at least one year qualify for long-term capital gains rates, which are lower than ordinary income tax rates for most investors. That built-in benefit means you are not simply trading tax breaks for nothing. For anyone pursuing early retirement, a taxable brokerage account becomes especially valuable. You can draw income from it freely while waiting to reach age 59.5, when penalty-free withdrawals from your 401(k) or IRA become available.
7. Alternative investments
Beyond traditional markets, alternative investments like cryptocurrency, real estate, precious metals, and private credit offer diversification that stocks and bonds alone cannot provide. The tradeoff is higher risk and, in many cases, lower liquidity. The potential for outsized returns exists in some alternatives, but so does the potential for significant losses. A financial advisor can help you assess what, if any, alternative assets belong in your specific portfolio given your risk tolerance and time horizon.
Every option on this list has merit, and the right combination depends on your income, goals, and stage of life. Working with a financial advisor to build a personalized plan is often the most efficient way to put additional savings to work.
Editor’s note: This article was updated to reflect 2026 IRS contribution limits, including the 401(k) employee deferral ceiling of $24,500, the IRA limit increase to $7,500 (with a $1,100 catch-up for those 50 and older), and the HSA limits of $4,400 for self-only coverage and $8,750 for family coverage. The 2026 Roth IRA income phase-out ranges for single filers ($153,000 to $168,000) and married couples filing jointly ($242,000 to $252,000) were also added.
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