Podcast Episode - Ask KT & Suze Anything: How Can I Get A "Mega" Retirement Account?

On this Ask Suze & KT Anything episode, KT asks Suze your questions about Roths, the must-have documents and teaching your adult children money lessons and so much more.

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Podcast Transcript:

Suze: July 24, 2025. Welcome everybody to the Women and Money podcast, as well as everybody smart enough to listen. Today we are so lucky to have the birthday girl.

KT: This is the birthday week, not just for me. But we've got so many July babies. We have Laurie Seligman, one of Suze's fabulous, fabulous friends...

Suze: Oldest.

KT: We have Alex, our incredible horseman,

Suze: Alex Axella, Alex, happy, happy birthday to you. He's such an incredible young man, isn't he?

KT: He jumps over those fences with those beautiful horses.

Suze: He could dance. He's boat captain and airplane pilot, so great, so great. I contribute that to his mother, Bridget, but that's besides the point. All right.

KT: And his poppy,

Suze: Poppy.

KT: Michael,

Suze: Mike Axla. What an incredible man as well.

KT: We had the best time. My sister and I want to thank all of you that sent beautiful notes, especially on the wall. I couldn't believe it. It was like over 100 messages, so beautiful. We're glad we made you all laugh too.

Suze posts these things that I could kill her for doing, but what she posted was very funny. So those of you that haven't seen it, go to the wall on the Women and Money app and enjoy a good chuckle.

Suze: Yeah, they all said, "Oh, I wish they had a sister. They wish they could laugh like you." KT, you truly do light up this whole world.

KT: Thank you, Suze. And Suze's gift was yet again almost 25 years of gifts — the most incredible, heartfelt. I haven't shared it with anyone, and my sister asked if I could share it with her. I said, not yet.

Maybe when we're in Canada fishing or on the plane. It's a video, but it's very personal, and Suze was unplugged and raw. She looked right into the camera — no makeup, no glasses, nothing — and told me what she thought and felt and wanted me to know.

Well, I can't — I'm gonna cry if I keep thinking about it. So let's move on and I will one day share that.

Suze: Alright, so today is Ask KT and Suze Anything, and this is where you can write in to asksuzepodcast@gmail.com. You can ask a question there. Now thousands come in, but if KT chooses it, it will be on this podcast. And as many of you know, I do scan them and will answer you personally if I think it warrants it.

All I ask is don't write me your entire financial situation and ask me, "Am I OK?" Don't do that. That's not what this is about. This is about asking questions really that you want to know but that would also help everybody else who's listening. And when you make it so personal — I have 50,000 here, 10,000 there, I have this and that, I have four kids — we're not going to choose it. Just so you know.

All right, Miss Travis, what do you have for us?

KT: I did choose something that isn't a question that I'd like to start today with. And it's always in the subject area — this is what always attracts my attention. This subject said, “With gratitude from someone you helped more than you'll ever know.”

And her name is Jen, and I want to read this and share it with all of you.

Dear Suze,

Thank you for the woman you are and the life-changing guidance you've shared with millions. Your straight talk, deep care, and unwavering insistence on financial clarity have helped so many of us live stronger, freer lives. As I listened to your podcast about the must-have documents, I was struck again by how deeply you impacted not only my life but the life of my late partner.

From the moment we met in 1996, she was already a devoted fan. By the time The Suze Orman Show became part of our weekly routine in 2002, we were both hooked, grateful students, soaking up every hard truth and every ounce of your wisdom.

Because of you and your books at the time, we had everything in place — wills, power of attorney, advance directives, beneficiary designations, the works. And when I lost her to suicide in late 2003, those documents, those systems you urged us to have gave me something close to a soft landing — as much as that's even possible. Without them, I can't imagine how much harder that would have been.

Suze: Yeah, but true.

KT: It's been nearly 22 years since then, but she gave me wings, and I've done my best to fly. I've built businesses, grown in purpose, and today I find myself assisting a financial advisor, licensed in life insurance and annuities. While I haven't yet sold a policy as I've solely been focused on assisting, the experience has been educational. I can hear your voice in my head.

Suze: You just did. Uh oh.

KT: Here's what Jen wrote: “Rightly skeptical of the products pushed too hard for commission's sake.” When I mentioned your name to my boss, his reaction only made it clearer to me: I'd rather be you than him. Every single time.

You've inspired me again — this time to begin planting seeds for something of my own: a service for LGBTQ individuals and chosen families to help them take those same essential steps my partner and I did all those years ago, to help them feel safe, informed, and empowered.

Thank you, Suze, for everything you gave us back then and everything you continue to give now.

With all my heart,

Jen

Suze: You know, I love that. But I have to tell you — I scroll through these and I found you wrote to her and I wrote her. Jen, if you're listening right now, you now have the email that, if you just reply to, will come directly to me.

What's important is in your endeavor to help those who really somehow feel like they're left out — and as time goes on, they're being more and more left out truthfully — that you write me if you need help or you just want another wing to help you fly a little more. Know that I am that wing for you, so always feel free to write me directly.

All right, there you go.

KT: OK, I'm going to follow that heartfelt email with one of my favorite topics of all time. Can you guess, Suze? Roth!

This is from Amber. She said, Hi Suze. My employer's 401k offers three options and will contribute up to 4% of the match: pre-tax, Roth, and post-tax. I'm confused. I thought the Roth option was post-tax. What's the difference between a Roth contribution and a post-tax contribution? Thank you for all you do and fish on KT — nice birthday haul.

Suze: That was a nice birthday. We've now had it for lunch, for dinner, for the whole thing. Amber, by the way, we love your name — Amber — because KT and I love that amber color. I have little bracelets of amber that I wear. I just love them. I always think it means money, just so you know.

So anyway, I hope you have lots of money, Amber. Here's the thing. You are correct. There are three different types of employer-sponsored plans.

Obviously, a 401k pre-tax means you fund it with money you've never paid taxes on. It grows and grows, and when you withdraw it, you're going to pay taxes on everything. A Roth 401k is funded with after-tax contributions, and when you withdraw following certain rules, it's 100% tax free — including its earnings.

There is something known as post-tax contributions. All of you know there are limits you can put into a 401k. Under 50, it’s $23,500. If you're 50 or older, it's $7,500 more. If you're between 60 and 63, you can put in an additional $11,250 (including the $7,500 catch-up).

Above those limits, in a pre-tax 401k plan, you can put in after-tax contributions up to $70,000 total — or $77,500 if you're 50+, and $81,250 if you're 62–63. These go into a sub-account in the 401k.

Those contributions are tax-free when withdrawn, but the earnings are 100% taxable unless your plan allows you to transfer that sub-account into your Roth 401k. Want an example?

KT: Please.

Suze: All right. Say you defer $23,500 and your employer matches $4,500 — total $28,000. You can subtract that from the $70,000 limit and contribute up to $42,000 more in after-tax contributions. That goes into a sub-account in your 401k, and with the right plan, it can be converted to your Roth 401k — that's how people build mega retirement accounts.

KT: So which of the three is best for Amber?

Suze: I don’t know her full financials, but assuming she's average: she should 100% contribute to the Roth 401k. Then, also do a Roth IRA if she qualifies. If she has extra money, she can make after-tax contributions to her 401k.

KT: OK, there you go Amber.

Next question says: Hi Suze, thank you so very much for helping my wife and I get our finances back on track. My question — during these volatile times, should we pay our rent two to three years in advance? This money is a bonus from my work. We have $600,000 in a diversified investment portfolio per your recommendations. We are 73 and 70.

It says: Yep, we went off the rails in our 50s, recovered in our 60s, and here we are. Recently retired and want to postpone taking any investment income till 2028. I love the ending: “Biscuits and hugs, Linda.”

Suze: That’s because KT loves biscuits.

KT: I love biscuits.

Suze: So no, Linda, you are not to do that. And let me tell you why.

KT: Rent!

Suze: What does that mean — rent?

KT: Anything could happen to you and your partner, and you've paid three years of rent in advance. It's not even your property.

Suze: Correct. And what if the landlord passes away, sells, anything? It's a waste. Instead, put that bonus in a high-yield savings or money market. Let it grow and pay rent monthly.

KT: Next from Donna: Hi Suze and KT, hope you had a wonderful birthday KT. I did!

Donna says: My question pertains to the must-have documents. I currently have a living revocable trust created several years ago and updated a few times. Should I purchase the must-have documents now with the $73 special and use them next time I need to amend my trust — instead of paying an attorney?

And can I transfer my existing trust into the must-have documents?

Suze: No, you can't transfer it. You’d need to start over and re-enter your info. But once it's there, it’s easy to update. No bank info is entered — just who gets what. Once done, get it notarized and update the copies with banks or anyone who has your old trust.

KT: Another must-have doc question from Joanie: I'm updating my must-haves from 2012. Should my IRAs be titled in the name of the trust? Or should I name the trust as the beneficiary?

Suze: An IRA is an Individual Retirement Account — you can't title it in the name of the trust. If you're married, your spouse should be the primary beneficiary. If not, and your children are of age and responsible, name them directly. Only use a trust if beneficiaries are minors.

KT: Jenny says: I just realized my husband is the primary account holder on our credit cards. I heard that when you die, the credit card is canceled and the authorized user can't use it. Is that true?

Suze: That is true. Apply now for a card in your own name. Your income is less important than your FICO score. If denied, try a secured credit card. But start today.

KT: TJ says: My daughter is 22, refinanced her car to pay credit cards. Her dad was helping, but he passed away last year. She maxed out again and now owes $15,000. She’s on a payment plan she can’t afford, and I refuse to help. What is your advice?

Suze: Keep doing what you're doing. She needs to learn. Let her suffer financially to learn the lesson. Don't enable her.

KT: Tina writes: I'm a 57-year-old nurse. I want to open a Roth IRA using a former employer’s 401k. It's under $20,000. I'm currently contributing to another 401k. Should I roll it into my current employer’s 401k?

Suze: If you roll it into a Roth IRA, you’ll owe taxes on the full amount. Instead, roll $10,000 this year and $10,000 next. Open a Roth IRA at Schwab or Fidelity and do a custodian-to-custodian transfer. Also, check if your current 401k is Roth — if not, make that change.

KT: Final question from Chad. He’s 59 and asks: Should I hire an investment professional? I've always invested in S&P 500 mutual funds. The advisors I interviewed charge 1.1%–1.5%. Should I hire one?

Suze: In the last 15 years, the S&P 500 averaged 12%–17%. Very few advisors beat that after fees. Ask them to show proof of their 10–15 year returns. If they’re not outperforming the S&P by 5%, it’s not worth it. You may be better off staying where you are.

KT: That’s a wrap, Suze. That was a great one.

Suze: Let’s remind everyone: the 4.3% APY 12-month certificate is still available at Alliant. If you deposit $75,000 or more, it’s 4.35%. Go to myalliant.com to check it out. And the $73 birthday special for the must-have docs ends Sunday. Go to musthavedocs.com/birthday.

KT: And why do we call them must-have docs?

Suze: Because you must have them!

Until next time, there's only one thing we want you to remember when it comes to your money:

Suze: This is the year to...

KT: Make your money, make more money!

Suze: And that’s exactly what we’re doing. See you soon. We love you.

KT: Bye bye.