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

Episode Summary: Suze's Mega Retirement Plan Strategy For 2026

Release Date: January 4, 2026
Host: Suze Orman
Co-host: KT

Overview

In this lively New Year’s episode, Suze Orman delivers her "Mega Retirement Plan Strategy for 2026," aimed at both long-time listeners and newcomers ready to take their retirement savings—and understanding—to the next level. With her signature blend of tough love, humor, and actionable advice, Suze tackles the biggest changes to retirement accounts for 2026, with an intense focus on Roth accounts, catch-up contributions for higher earners, and a little-known IRS rule (415c) that can turbocharge tax-free retirement savings. Suze is joined by her partner KT, who serves as a bridge for listeners who might feel overwhelmed by these complex topics.

Key Discussion Points and Insights

1. Welcome & Episode Setup

• Suze and KT open with playful banter about KT’s ongoing confusion with Roth accounts.
• Suze emphasizes the importance of security through emergency savings and introduces this episode’s focus on advanced retirement savings strategies.

  "The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account." – Suze (00:02)

2. The "Susie School" Begins: Roth Account 101 (and Beyond)

• Roth IRAs and Roth 401(k)s are Suze’s favorite retirement vehicles.
• She stresses that, if eligible, Roth accounts are superior to traditional pre-tax accounts for most people (05:05–07:00).

  "In my opinion, I really believe that the only place in most circumstances where you should be putting money is a Roth." – Suze (04:54)

2026 Contribution Limits

• Roth IRA:
  • Under 50: $7,500 annual contribution.
  • Age 50+: $8,600 (includes $1,100 catch-up).
  • Must have earned income at least equal to the contribution amount.
• Income limits for Roth IRA contributions:

  • Single: Full contribution if Modified Adjusted Gross Income (MAGI) under $153,000, phases out up to $168,000.

  • Married filing jointly: Full contribution if MAGI under $242,000, phases out up to $252,000.

  • Married filing separately: Only allowed if lived apart for the entire year; otherwise, ineligible if income exceeds $10,000.

    "If you are married, filing separately, and you truly live apart from your spouse for the entire year, then you get to use the single Roth limits... But if you lived together even for one day, the Roth door practically slams shut on you." – Suze (07:28)

3. Major Change: Catch-Up Contributions for High Earners

• New for 2026: If you’re 50 or older and earn more than $150,000 in W-2 wages in 2025, every dollar of your catch-up contribution must go into your Roth 401(k), 403(b), or TSP—not a traditional pre-tax account. (12:20–14:25)

  “If you are 50 or older and you earned more than $150,000 in W-2 wages from an employer in 2025, then every dollar of your catch-up contribution has to go to a Roth.” – Suze (13:56)

• Catch-up contribution limits:

  • Age 50+: $8,000
  • Super catch-up (Ages 60–63): $11,250 in addition to regular contribution, for a total of $35,750.

• If your employer doesn’t offer a Roth option: they must add it or you will not be able to make catch-up contributions.

  “Most employees are now going to finally add a Roth option, KT. Because I got news. Employees are going to get really angry when catch-ups disappear simply because they didn't offer a Roth option.” – Suze (14:40)

4. Hidden Gem: After-Tax Contributions via IRS Rule 415(c)

• IRS Rule 415(c): Allows for after-tax contributions up to $72,000 (under 50) or $80,000 (50+) per employer in your 401(k), including both employee and employer contributions.
• Any extra after-tax contributions (beyond standard and catch-up) can be made and, if your plan allows, immediately converted to your Roth 401(k) for tax-free growth—a powerful “Mega Backdoor Roth” strategy.

  "Now you can have your cake and eat it too." – Suze (18:08)

Action Steps for Listeners:

1. Check 2025 W-2 wages to determine eligibility and planning needs.

2. Ask your HR department the following:

   • Do you support Roth catch-up contributions?
   • Do you allow after-tax contributions to the 401(k) plan?
   • Do you allow in-plan conversions (so after-tax can move to Roth)?

3. Consult a tax advisor to optimize withholdings and strategy.

   “This is how you build up a massive tax-free retirement account. This is how you do it. But you have to know if you are allowed to do it or not.” – Suze (19:20)

5. Listener Acknowledgment and Encouragement

• Suze makes it clear that this episode is especially valuable for those already maxing out their retirement plans, but motivates everyone to aim for that position:

  “For those of you who are going to be in that situation one day or who are in that situation now, this podcast was for you.” – Suze (23:43)

• She reassures listeners that anyone confused should submit questions to the show and check the community app for the full summary.

  “If you have questions about this, I want you to write them... Keep them short... This coming Thursday, we will answer any questions that you happen to be confused about this now.” – Suze (20:47)

Notable Quotes & Memorable Moments

• KT: “Susie’s starting the new year with her boyfriend, Roth…” (02:46)
• Suze: “A lot of you are probably sitting there thinking, Suze, I don’t even fully fund my retirement accounts now… But hopefully, if you continue to listen... now the majority of them... are multimillionaires, maxed out... own two homes, and now have extra money to invest.” (23:32)
• KT: “If everyone follows this rule, you’re going to have—what do you call it—a mega retirement strategy.” (23:25)
• Suze: “People first, then money, then things. Then Roth.” (24:25)
• KT: “That was a really tough opening of ’26. Not necessarily what I expected…” (23:16)

Important Timestamps

• Roth IRA overview and 2026 contribution/income limits: 04:41–09:09
• New catch-up rule for high earners: 12:20–14:25
• Explanation of IRS Rule 415(c) and mega backdoor Roth: 16:13–20:00
• Action steps and final strategy summary: 19:20–21:56
• Listener direction for questions/community: 20:47–21:56
• Closing motivational thoughts: 23:32–24:30

Tone and Style

The episode is warm, fast-paced, and conversational, with Suze taking the role of teacher and KT as the relatable student, often echoing the confusion of listeners new to advanced retirement strategies. Suze’s advice is direct, emphatic, and comes with urgency—ensuring listeners are equipped to take full advantage of changing retirement rules.

Takeaways

• Roth accounts (IRA/401k) are key tools for building tax-free retirement wealth—make sure you’re maximizing them under new 2026 rules.
• Big changes for higher earners 50+: If you want to make catch-up contributions and make over $150,000 in W2 wages, you MUST use a Roth 401(k).
• IRS Rule 415(c) offers a ‘mega backdoor Roth’ pathway for those who can save above the standard limits—understand it and ask your HR if your plan allows it.
• Stay engaged: submit questions and check Suze’s app/community for summaries and clarifications.

Final Words:
“People first, then money, then things. Then Roth.” —Suze (24:25)