Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMarc GubertiFri, July 3, 2026 at 1:22 AM GMT+2 5 min readQuick ReadIRS Section 415(c) caps total 401(k) contributions at $72,000 per employer, leaving after-tax headroom most executives never fill beyond their standard deferral and match.Executives earning income from a consulting LLC or board seat get a fresh $72,000 ceiling per unrelated employer, pushing after-tax deferrals past $100,000 annually.Converting after-tax 401(k) contributions to Roth immediately eliminates RMDs, IRMAA Medicare surcharges, and the tax drag that makes traditional savings costlier in retirement.Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.The corporate VP three years from retirement has been maxing the 401(k) for two decades. The elective deferral cap at $24,500 in 2026, plus an $8,000 catch-up after age 50, only soaks up a fraction of an executive comp package. The move that closes the gap is buried in plan documents under a section number most participants have never read: 415(c).insta_photos / Shutterstock.comInternal Revenue Code section 415(c) sets the total ceiling on what can land in one employer's defined contribution plan in one year. For 2026 that cap rose to $72,000, and it counts everything: the elective deferral, the company match, profit sharing, and after-tax dollars. Subtract a standard deferral and a typical 6% match on a $300,000 base, and there is roughly $30,000 of empty headroom in the plan that nobody is required to tell you about.Suze Orman flagged the mechanic on a recent podcast. "There is a IRS rule and it's called 415 C. And it allows you in an employer plan to put in after tax contributions into your 401k and the max because there is a limit. The 415 max is ready, $72,000 per employer or 80,000 per employer if you are 50 or older." The second step, where the real six-figure deferral becomes possible, goes unmentioned.Read: Are you ahead, or behind on retirement?