When it comes to building long-term wealth, few benefits in professional sports rival the current version of the NHL Pension and optional U.S. 401(k) Savings Plan. Yet despite its generous limits and flexibility, many players still overlook one of the most powerful tools within it — the Post-Tax Contribution option.
The Misconception: “Post-Tax” Means “Roth,” Right?
Wrong – the confusion begins with the terminology. Many players (and even some advisors) assume “Post-Tax deferrals” and “Roth 401(k) deferrals” are the same thing. They’re not. This nuance is often missed, and as a result, millions of dollars in potential tax-free growth are left on the table — or never contributed at all.
Here’s the breakdown:
- Roth 401(k) deferrals are made with after-tax dollars, grow tax-free, and can be withdrawn tax-free in retirement.
- Post-tax 401(k) contributions are a completely separate and additional opportunity within the NHL plan that permit higher annual contribution limits than the pre-tax/Roth deferral. These contributions are also after-tax, but subsequent financial planning steps should be taken to optimize the tax treatment of these funds immediately after contributing – more on this later.
Why the Confusion Exists:
The short answer: education — or lack thereof. Most NHL players enter the league focused on their spot in the lineup, not on decoding IRS contribution codes. Financial jargon like “after-tax in-plan conversion” or “mega backdoor Roth” can feel miles away from the day-to-day rhythm of life on the road.
Even well-intentioned advisors who don’t specialize in wealth management for hockey players sometimes blur the line. They’ll encourage players to consider “maxing out your 401(k)” without understanding the post-tax layer that makes this plan unique.
Optional — and Overlooked:
It’s worth noting that the NHL 401(k) Savings Plan is entirely optional. Participation isn’t automatic. And because the NHL Pension Plan (post-lockout under the 2012 CBA) already provides strong lifetime benefits, many players assume their retirement is “handled.”
While the pension is an amazing benefit, pulling all the available levers within the 401(k) offers something the pension cannot: flexibility, tax diversification, and ownership of your own money.
Important Follow-Up Step after making your Post-Tax Contribution:
As mentioned earlier, similar to a Roth deferral, the Post-Tax Contribution is funded with after-tax dollars. However, there is one important follow up step to optimize this planning strategy. If the player and their wealth management team do not take subsequent action, the earnings from the post-tax contribution grow tax-deferred, not tax-free. Fortunately, the NHL 401(k) Plan Documents include generous language that permit players to immediately perform an in-plan Roth conversion, or convert their Post-Tax contribution into their own Roth IRA. Once this pivotal step is taken, not only do contribution dollars grow tax-free, but so does the future investment growth.
2026 IRS Numbers:
For 2026, the IRS caps aggregate 401(k) contributions (Pre-Tax, Roth, and Post-Tax) at $72,000.
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- Up to $24,500 can go toward employee deferrals (Pre-Tax or Roth) – it is usually best for players to elect Pre-Tax in their high income years to reduce taxable income
- Once the above Pre-Tax/Roth deferral is maxed out, players can begin making Post-Tax Contributions of up to $47,500 – this latter opportunity is the one we see many established NHL players missing before they begin working with our firm
Example: Two Teammates with 10-Year NHL Careers:
- Player A contributes only $24,500 pre-tax each year
- Player B contributes $24,500 pre-tax plus $47,500 post-tax converted to Roth each year
Using a reasonable estimate of 7% annual investment growth after 10 seasons of contributions during their playing years, and then leaving both accounts untouched for another 20 years:
| Player | 10-Year Value | 30-Year Value (if left to grow) |
|---|---|---|
| A | ≈ $338,000 | ≈ $1.31 million |
| B | ≈ $995,000 | ≈ $3.85 million |
That’s a $2.5 million difference — the majority of it tax-free in retirement if managed correctly.
Why It Matters:
Retirement planning for high-net-worth hockey players is about more than money — it’s about control. The NHL Pension Plan provides an incredible base, but it shouldn’t be the only lever you’re pulling during your peak earning years. While it is essential that players and their families properly plan for adequate liquidity after their hockey playing career, players who leverage the post-tax option gain:
- Tax Flexibility in Retirement – having tax-free Roth balances can help complement other assets in retirement that will be taxable (such as NHL pension and Pre-Tax 401k accounts)
- Distribution Flexibility – unlike Pre-Tax 401k and Traditional IRA accounts, Roth IRAs do not have Required Minimum Distributions, meaning families have more control in retirement when choosing to withdraw assets or leaving them in accounts to grow
- Legacy Potential – from an inheritance standpoint, under current U.S. tax law, Roth IRA assets are much more tax-friendly for next-generation recipients
Action Items to Ask Yourself Today:
- Am I evaluating whether both pre-tax and post-tax 401(k) opportunities are in my best interest each year?
- If I am contributing post-tax, is it being converted to Roth immediately after each contribution so the earnings can be tax-free in retirement?
- If I am a retired NHL player with money still in the 401(k) plan, is there a chance some of those funds might be Post-Tax contributions that were never converted to Roth?
- Does my advisory team truly understand the NHL plan’s unique structure — or might they be leaving value on the table?
As always, our team would love to be a resource to your family. You can always learn more and schedule a quick call at hockeywealth.com or email us anytime at info@hockeywealth.com.
Wishing everyone a blessed 2026,
Johann Kroll, CFA, CFP®
Founder
*Investment services offered in Canada are provided through The Hockey Wealth Group Canada LLC, a registered portfolio manager in Canada. Investment services offered in the United States are provided by Oceanside Advisors LLC dba the Hockey Wealth Group, an SEC registered investment advisor. The information in this newsletter is for educational purposes only and does not constitute financial, tax, or legal advice. Past performance is not a guarantee of future results. Any performance numbers in this newsletter do not include the impact of taxes, fees, and inflation. All strategies should be coordinated with the appropriate tax, legal and investment professionals.