Orchestrating Violet's Roth Maximization

Posted February 16, 2026, By Cole Ferrier

In the world of strategic financial planning, finding a way to legally use the same dollar twice is the ultimate win. While most people view contribution limits as hard ceilings, there is a legitimate "double-dip" opportunity that is so powerful, it feels like a secret advantage hidden within the tax code.

By carefully aligning workplace retirement plans with individual accounts, we can achieve what I call Roth Maximization—a method to move 100% (or more) of a minor's earned income into a permanent tax-free fortress before they even graduate high school.

The "Violet" Protocol: Breaking the System

Before we look at the math, let's look at a "breaking change" in the system. Meet Violet. At 14 years old, she became the youngest participant in the Washington State Deferred Compensation Program (DCP).

The DCP is a governmental 457(b) plan run at the state level. When Violet tried to sign up, the system literally wasn't built for her—they actually had to update the state's software and administrative protocols to allow a 14-year-old to save. Even though it's called "Deferred Compensation," the program allows for Roth contributions, which is the key to this entire architecture.

Let’s be honest: Violet wasn't exactly looking to optimize her tax efficiency at 14. To her, a paycheck meant freedom today, not a spreadsheet entry for the 2060s. I had to step in and facilitate a "forced upgrade" to her mental model. I leaned in and told her, "I’m going to make you an offer you can’t refuse." As a financial planning gangster, I knew the math was on her side, even if she didn’t yet.

Violet vs. The FIRE Movement

If you’ve spent any time in the "money nerd" corners of the internet, you’ve likely heard of the FIRE Movement (Financial Independence, Retire Early). The core philosophy of FIRE is to aggressively cut expenses and maximize savings to exit the traditional workforce decades early.

The "Gold Standard" for FIRE practitioners is usually a 50% savings rate. To achieve that as an adult, there is a perception that you’re usually living on ramen and driving a 10-year-old Corolla. While that isn't entirely true, it is an intense, disciplined way to live.

Of course, we have to admit it isn't a fair comparison: Violet benefited from a significant liquidity injection from the "Bank of Dad." In my article on the Two-Player Advantage, I talk about how couples should act as a single financial unit to maximize power-ups. Here, we simply extended that logic to the entire family unit to build a more robust system.

The Technical Architecture: The Real-World Data

In engineering, we look at "production data" to see how a system actually performs. Here is the real-world math of how we refactored—or reorganized—just a few Saturday mornings of work from Violet's 2025 tax year.

1. Workplace Plan (The Roth 457(b)/Roth 403(b)/Roth 401(k)): Violet "maxed out" her income into the Roth 457(b).

   • Actual 2025 Gross Wages: $1,111.37

   • FICA/WA State Taxes: -$181.70 (Social Security, Medicare, WA Cares, PFML)

   • Roth 457(b) Contribution: $929.67

   • Her Take-Home Pay: $0

2. The IRA Logic Gate: This is the key "debug" for this strategy. In programming, a logic gate is a simple Yes/No decision. Because she used the Roth provision rather than the traditional pre-tax option, her "earned income" didn't disappear in the eyes of the IRS. This kept the gate open for her to contribute to a Roth IRA as well.

   • W-2 Box 1 Amount: $1,111.37

   • Valid Roth IRA Contribution: $1,111.00 (Note: The actual contribution to Violet's Roth IRA was rounded down to the nearest dollar for administrative simplicity).

Engineering the "Dad Match" (Level 1 & Level 2)

To get Violet to agree to a $0 paycheck, I had to architect a "matching" system that replaced her cash. Think of this like playing video game levels where the rewards get bigger as you progress.

Level 1: Making the System Whole

The first challenge was replacing her "spending money." Since 100% of her pay went straight to retirement, her bank account was empty. To clear Level 1, I gave her $929.67 in cash—the equivalent of what her take-home pay would have been. Her lifestyle remained unaffected.

Level 2: The Superpower Move

Once the baseline was established, we moved to the bonus round. Since her job earned her the right to contribute to an IRA, I provided an additional $1,111.00 in cash to fund her Roth IRA.

The Final System State:

• Total Earnings: $1,111.37

• Total Saved in Roth: $2,040.67 ($929.67 + $1,111.00)

• Actual Savings Rate: 183.6%

The Power of the "45-Year Run"

To understand the real impact, we have to look at the future state. If Violet is 15 now and leaves that $2,040.67 untouched until age 59.5, we are looking at a 44.5-year "compounding cycle."

Assuming a 6% real return (meaning we’ve already accounted for inflation), those few Saturday mornings of work are projected to grow into $27,000+ in today’s purchasing power. That is a foundational piece of her retirement plan, built and fully funded before she even finished high school.

Risk Note: All investments include risk. A 6% real return isn't guaranteed—the market can go down as well as up. However, this projection gives us an idea of the sheer power of kicking in just $2k toward a minor’s future. For the cost of a high-end laptop today, we are potentially handing a 60-year-old Violet a tax-free "power-up" that significantly alters her long-term financial trajectory.

Scaling the Strategy: Multi-Year Compounding

This math becomes exponentially more powerful if a minor has multiple years of higher income and the family has the liquidity to maintain the "Dad Match."

If your child spends four years of high school and four years of college stacking these contributions, they aren't just starting a retirement account; they are building a legacy. We will leave it to the reader to guestimate exactly how much of an impact they could make on their children's future based on their own circumstances.

Considered Alternative: The "Trump Account" Logic Gate

As we look at optimizing this system, parents often ask: "What about the new Section 530A Trump Freedom Accounts?" It’s a valid question. The "Trump Account" is a high-profile addition to the 2026 tax landscape, especially with the $1,000 government seed for newborns. However, from a pure systems-optimization standpoint, it is often a "sub-optimal branch" if your child has earned income.

Here is the debunk: Trump Accounts are essentially Traditional IRAs for kids. While contributions are made after-tax (no deduction), the earnings are taxed as ordinary income upon withdrawal.

Think about the logic:

• Roth Strategy: Violet pays 0% tax today (due to the standard deduction) and 0% tax at withdrawal.

• Trump Account Strategy: Violet pays 0% today, but any gains will be taxed as ordinary income in the future.

In engineering terms, this is a massive degradation of system efficiency. Why take tax-free growth when you can have tax-free growth and tax-free withdrawals? If your child has a W-2, using the Roth remains the gold standard. The Trump Account is better suited for children without earned income.

The Production Deployment Checklist

If you're ready to "patch" your family's financial future, follow this sequence:

1. Check the "Hardware": Ensure the employer offers a Roth version of their 457(b), 403(b), or 401(k).

   • The Gatekeeper Bug: Be warned—finding a workplace plan for a minor is often the hardest part of the mission. Most standard plans have age and service requirements that effectively block minors from participating, even if they have a steady job.

2. Verify the Earned Income: The minor must have a W-2 or legitimate earned income to validate the contributions.

3. Clear Level 1 (The Lifestyle Bridge): Replace their take-home pay with cash so they don't feel the "latency" (delay) of saving.

4. Clear Level 2 (The Double-Dip): Use the unreduced income on their W-2 to fund a separate Roth IRA.

Conclusion: Engineering the Next Generation

Violet proved that even legacy state systems can be updated to support early savers. By helping your children refactor their work hours into a powerhouse of long-term growth, you are running the ultimate "unit test" for generational wealth.

Let's Build Your Family’s Financial Fortress

Navigating the intersection of workplace 457(b) plans, minor-owned Roth IRAs, and "Dad Matches" requires more than just good intentions—it requires precise execution. If you’re ready to "patch" your family’s financial operating system and ensure your children are starting their adulthood with a massive technical advantage, let’s talk.

Whether you're a high-earner looking to implement the Mega Backdoor Roth or a parent wanting to architect a Roth Maximization strategy for your kids, we specialize in cutting through the complexity to build plans that work. Contact us today to schedule a consultation and turn your financial complexity into a reliable roadmap.