Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

Episode: Suze Answers Your Mega Retirement Plan Strategy Questions
Date: January 8, 2026
Host: Suze Orman and KT
Duration: ~36 minutes

Episode Overview

In this highly engaging Ask KT & Suze Anything edition, Suze Orman fields questions from listeners about her recent "mega retirement plan" strategy episode (January 4, 2026). The central theme is understanding advanced retirement account strategies—especially the mega/backdoor Roth maneuvers, new 2026 legislation, and how different employer plans interact with these opportunities. Suze clarifies common confusions about income limits, contribution rules, and how employer options affect your choices. Her trademark warmth, directness, and humor shine through, making complex strategies accessible and inspiring.

Main Discussion Points & Insights

1. Mega Backdoor Roth & Pro Rata Rule (05:41, 07:56)

• Listener Shelby’s Story: At 62, Shelby went from zero financial security at 40 to $3 million in retirement savings, $300K emergency fund, and a mortgage as her only debt.
  • Suze: Uses Shelby’s success to inspire listeners, especially younger ones feeling behind. "People like Shelby…who went from nothing to seriously having a lot of money."
• Question: Does the pro rata rule apply to mega Roth conversions from employer 401ks?
  • Suze: "Individual Retirement accounts have nothing to do with an employer account...the pro rata rule does not apply when putting in [after-tax] money [to an employer plan]." (09:54)
  • Explains distinction between IRAs (where pro rata matters) and employer plans (where it does not).

2. After-Tax 401(k) Contributions & Importance of Employer Plan Rules (10:09, 10:50)

• Laura asks about after-tax 401k using the 415 rule at age 33, with only a regular 401k available.
  • Suze: "If the employer...does not offer a Roth 401k or allow in-plan transfers, you do not want to do a 415C. You're far better off with a Roth IRA (or backdoor Roth IRA if eligible)." (12:30)
  • Key Takeaway: Employer must offer necessary plan features for these strategies to work.

3. Catch-Up Contributions & The $150,000 Rule (15:28, 15:39, 18:49)

• Kelly asks: "If I make over $150,000, do I have to put all my contribution into a Roth?"
  • Suze: Only catch-up contributions (for those 50+) must go into the Roth 401k/403b if 2025 W-2 shows $150,000+; base deferral can remain pre-tax.
  • Clarification: If no Roth plan, employer must create one or employees lose the ability to make catch-up contributions. (19:47)
  • Suze: "Your corporation has no choice but to either get a 401 Roth or...say to the employees, you can no longer make a catch-up contribution. They are wrong, wrong, triple wrong, quadruple wrong." (19:47)

4. Employer Knowledge Gaps & Financial "Fakers" (21:07, 21:13)

• Listener reports HR advised ignoring new catch-up rules.
  • Suze: Expresses strong frustration at uninformed HR. "It's OK for somebody to say, 'I don't know, but I'll find out,' rather than pretend...I hate financial fakers." (21:13)

5. Maximizing After-Tax Plan Contributions: The Math of 415(c) (22:00, 23:11)

• Marlee's Case: Maxes Roth 403(b), does in-plan conversions of employer match, and invests extra in a brokerage account.
  • Suze: "You take [employee + employer contributions], subtract that from $72,000, and that's how much more you can put in after-tax (415c)...That's a whole lot of money." (24:41–25:50)
  • This allows significant tax-advantaged savings beyond the backdoor Roth IRA.

6. The TSP (Thrift Savings Plan) Exception (30:09, 30:57)

• Tommy asks: Can he do a 415(c) in the TSP due to upcoming in-plan conversions?
  • Suze: "For a TSP, they do not allow 415 mega backdoor...They do allow in-plan conversions starting January 28th...for combat zone tax exempt (CZTE) pay, extra contributions are allowed." (31:17–33:30)
  • Note: Armed service members in a combat zone can contribute well above the standard limit, then do in-plan Roth conversions for powerful tax advantages.

7. Duration and Eligibility for These Strategies (34:17)

• KT asks: How long can you take advantage of these?
  • Suze: As long as you’re working and have eligible earned income. Once retired or taking RMDs, these strategies generally no longer apply.

Notable Quotes & Memorable Moments

• On Shelby's Success:
  "Many of you listen to this podcast and maybe you're younger...it's because of people like Shelby...who went from nothing to seriously having a lot of money." — Suze (06:16)

• On HR Giving Bad Advice:
  "You make them money...and then you go to somebody who needs to know the correct answers...and [they're] lazy enough to not even say 'let me find out.'" — Suze (21:13)

• On the $150,000 Rule:
  "If your employer doesn't get [a Roth 401k], you are not going to be allowed to make a catch-up contribution...They are wrong, wrong, triple wrong, quadruple wrong." — Suze (19:47)

• On Using ChatGPT for Financial Rules:
  "You have to be very, very careful when you're using any artificial intelligence to answer a question...they are using figures from last year, two years ago...you are 100% wrong." — Suze (28:01)

• On Military Savers:
  "Katie and I so love the armed forces...I do know their plans inside and out...If you’re in a combat zone, you are allowed after your normal contributions...to put in extra money up to the 415C limits." — Suze (30:44–32:10)

• Episode Motto:
  "People first, then money, then things." — KT (35:50)

Key Timestamps for Important Segments

• 01:21 — Suze explains format: answering questions about last Sunday’s complex "mega retirement" podcast
• 05:41 — Shelby’s inspiring success story & question, leading into pro rata/backdoor Roth clarification
• 10:09 — Laura asks about after-tax 401k, 415(c), and what to do when plan doesn’t offer Roth
• 15:28/15:39 — Catch-up contribution questions ($150,000 rule)
• 18:49 — Employee told by HR to ignore new rules—Suze’s strong response
• 23:11 — Detailed math on 415(c) after-tax contributions
• 30:09–33:30 — TSP (Thrift Savings Plan) rules, new in-plan Roth conversion, and the combat zone exception
• 34:17 — How long you can use these strategies
• 35:50 — Closing mantra

Structure & Flow

• Lively banter establishes friendly tone (accidentally not recording the first take, movie/music references)
• Questions are read by KT; Suze gives direct and thorough answers
• Emphasis on listeners’ real-life success, breaking down technical content into actionable advice
• Suze punctuates key points with strong opinions and passionate encouragement, maintaining accountability for financial professionals and employers alike

Final Thoughts

This episode is an essential listen/read for anyone with a 401k, 403b, TSP, or IRA seeking to fully leverage retirement accounts in 2026 and beyond. Suze’s advice is clear: learn the rules, pressure your employer for robust plan offerings, and don’t let mediocre HR guidance or online misinformation keep you from maximizing your future wealth. The theme of hope—no matter your starting point—runs throughout, and the practical, immediate tips are invaluable.

Mantra to remember:

"People first, then money, then things." — KT (35:50)