2026 contribution limits and rollover strategies

One of the most common questions from new members is how to get a meaningful base into a Roth when annual contributions are capped. The cap is real, but it's not the only lever; and understanding the difference between a contribution and a transfer changes what's possible.

Contributions are the new dollars you add each year, subject to the annual limit and income phase-outs. That's the slow, steady drip. But money that is already inside a Roth; say, an old Roth IRA or a Roth 401(k) from a former employer; can be moved via a direct trustee-to-trustee transfer without counting as a new contribution and without triggering tax. That's how members consolidate idle Roth dollars into the account where they run the system.

There's also the conversion route: moving pre-tax dollars (a traditional IRA or 401k) into a Roth. This is a taxable event; you pay income tax on the converted amount now; but it permanently moves those dollars into the tax-free bucket. For people who expect higher future tax rates or a long runway of tax-free compounding, the math can be compelling. It is also genuinely complex and situation-specific.

None of this is tax advice, and the conversion decision in particular deserves a real conversation with a tax professional. The point is simply to know the menu: contributions for new money, transfers for existing Roth money, conversions for pre-tax money you're willing to pay tax on today.

For the system specifically, a larger starting base shortens the timeline dramatically because of compounding. The members who reach milestones fastest are usually the ones who consolidated existing retirement dollars early rather than relying on annual contributions alone.