Podcast Episode - Suze's Mega Retirement Plan Strategy For 2026

On this Suze School, we get a review on the basics of Roth retirement accounts and Suze goes over the new 2026 contribution limits.  Then, Suze explains how a new rule around employer sponsored Roths can help you build up a massive tax free retirement account!

Listen to Podcast Episode:

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Podcast Transcript:

KT: Hey everybody, it's KT and Suze here, and today is the beginning of 2026 Women and Money podcast.

Suze: What's the date, KT?

KT: January 4th. Do you believe it?

Suze: 2026.

KT: So it's still Happy New Year.

Suze: It's Happy New Year, yes, but you have to welcome everybody.

KT: Welcome to the Women and Money podcast and today's special.

Suze: No, you gotta do it right, KT, come on.

KT: Welcome to the Women and Money podcast and ask KT and Suze. All right, welcome to the Women and Money podcast 2026. This is Suze School.

Suze: All right, let's stop, everybody. You would think by the time we've gone into this many years, KT would get it right, wouldn't you? Welcome to the Women and Money podcast and everybody's smart enough to listen.

KT: It's Suze School.

Suze: And Suze just schooled you.

KT: Oh my God, wait till you hear what she has in store today, and that's why I'm sitting in here with her. None of you are gonna understand it.

Suze: I was trying to explain, KT this morning asked me, Suze, what are we gonna do for the first podcast of the year that we're doing? And I said, first of all, KT, it's Suze School. I'm doing. And I started to explain to her what it was and what did you say?

KT: No one is gonna get it, and you need me in there to ask questions or to listen, because if I don't get it, they're not gonna get it.

Suze: Now, why do you all think that she doesn't think you're gonna get it? Everybody?

KT: All right, simple four-letter word and the word is Roth. R-O-T-H.

Suze: Now for those of you who are new to the Women in Money podcast,

KT: and everyone's smart enough to listen.

Suze: Oh, thank you, KT. What you have to know about KT is this: Roth's my favorite retirement account totally does her in. She just goes nuts with them. So that's why she thought she needed to be here today.

KT: Suze's starting the new year with her boyfriend Roth and all of these accounts that are so confusing, but they're really important because we're all gonna benefit from them. But they're very, very confusing, so you need to listen up and you need to listen carefully.

Suze: So right now, Suze School is in session, but I am telling all of you, you have got to take out your Suze notebooks because it's possible or probable you have no idea about what I am going to tell you today.

So we'll just kind of sit here and we'll wait KT for them to get out their notebooks. How was your New Year's?

KT: It was great. Tell everybody what we did. All right, so we're back in Florida. You all know that we're no longer living in the Bahamas. We're back in Florida.

We have this fabulous cozy little condo and we looked at each other and said we're not going to parties, we're not gonna watch Anderson and Andy drop the Ball on New Year's Eve in Times Square, we're gonna do something very different. She said what?

I said I'm gonna make a big bowl of popcorn and we're gonna watch the Landman series and binge it until 2026 and that's exactly what we did. So it's, it was so great.

Suze: So Landman, for those of you who don't know, it, I don't know how you get it, but you should get it. It is worth every single penny of it. Number one, there are two seasons. We did the entire first season, which was 10...

KT: Episodes.

Suze: The second season...

KT: Seven episodes.

Suze: Well, now, as of today, eight.

KT: The eighth episode is after this podcast. I'm going right into, right into it.

Suze: All right, KT, I think they all have their notebooks out?

KT: I think everyone's ready, Suze.

Suze: All right, so here we go. Suze School with my most favorite pupil of all, KT, is ready to begin.

Suze: Now hopefully all of you know that there are two kinds of retirement accounts: traditional or pre-tax ones and Roth or after-tax ones. So the contribution limits I'm about to tell you are the same for traditional IRAs as they are for Roths, as well as traditional and Roth for employer plans.

However, let me just state now, in my opinion, I really believe that the only place in most circumstances where you should be putting money is a Roth if it's available to you. So if you are going to contribute to a pre-tax plan, know the limits for contributions apply to both. However, I'm only addressing Roths today.

So in 2026, the Roth IRA contribution limits are $7,500 if you are under 50. $8,600 if you are 50 or older, because that includes the $1,100 catch-up. So, if you're 50 or older, you're allowed to put in $1,100 more than the $7,500 if you are under 50.

But here is what you need to know. You can only contribute up to the point of the max if you have earned at least that amount of money.

So, for a Roth, you have to have earned at least $7,500 if you're under 50. $8,600 if you're 50 or older, to put in the max. If you only earn $4,000, that is the max that you can put in. Now, let's talk about the income limits.

If you are filing single, you can put the max of $7,500 or $8,600 if you are 50 or older, if your modified adjusted gross income is under $153,000. You can put in money all the way from $153,000 to $168,000. However, it starts to decrease as you make more money. But after $168,000 of modified adjusted gross income, you no longer qualify for a contributory Roth.

And again, a contributory Roth is where every year, you put in the money that we just talked about. You got that, KT? You're good.

KT: I got that.

Suze: All right. That means we're doing good, everybody.

If you are married, filing single, be careful here, and you are living with your spouse, you do not qualify at all for a Roth if you make more than $10,000. Just know that.

However, if you are married and filing separately, everybody, and you truly live apart from your spouse for the entire year, then you get to use the single Roth limits that I just told you about. But if you lived together even for one day, the Roth door practically slams shut on you.

However, if you are married filing jointly, you can do a full contribution up to the point of the max if your modified adjusted gross income is under $242,000. And again, from $242,000 to $252,000, the max starts to go down, and once you've reached $252,000, you no longer qualify for a contributory Roth.

Now, besides the Roth, KT, you get, is this good so far?

KT: Yeah, I'm trying to follow. Being honest. It's a little complicated.

Suze: But KT, these are contributions that everybody should know. I'm just reviewing in case you're new, everybody, to Roths, and what we learned, by the way, at the dinner that we were at on the 30th, we went out to dinner with a whole bunch of new people that we had met.

They had no idea.

KT: No one at the table knew about—well, some people did, but most did not.

Suze: Have a clue.

KT: These were really successful people.

Suze: And I was just like, what?

KT: Me too. I like, I know more than them.

Suze: So since I told all of them to tune in, here we go, and this is for them since they've tuned in. Now listen, besides a Roth, a contributory Roth, an IRA which you can do on your own, and you can do it at any brokerage firm wherever you wanna do it—

If you work for an employer, you can also have your Roth IRAs in either a Roth 401k, a Roth 403B, or TSP, depending on what your employer offers. So most places that you work for offer a Roth version as well as a traditional one.

But you listen to me and you listen to me closely: I only want you to do a Roth if it is offered.

Now, let's go over the contribution limits for 2026, because they have changed, everybody. The employee contribution limits are $24,500 if you're under 50. $32,500 if you're 50 or older, because that includes an $8,000 catch-up.

Now KT, when I was telling her about that this morning, she said, so you have to put in all $8,000. I said, no, that's the max catch-up, but you can put in an extra $1,000, $3,000, but the max catch-up is $8,000.

But if you are between 60 and 63, you get the super catch-up which is $11,250. So in the years 60, 61, 62, and 63, you can put in $11,250 more than what somebody under 50 can put in. So this year it would be a total of $35,750.

Now, your employer match does not count towards your employee limit, just so you are clear on that. Not all employers match, but most of them do. However, once again, just like I told you with the IRA limits, the max is 100% of what you earned—whichever one is less: the max or what you earn. That also applies to your 401k, 403B, TSP, and the catch-up, just so you know.

Now, here's the real reason for the podcast today.

Suze: Because most of you knew exactly what I've already told you, except we have new limits.

Starting January 1st, 2026—and I want you to pay attention here, OK?—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.

And that's where KT went, “What? What?” So again, a catch-up contribution is what you voluntarily want to put in once you turn 50 or older because you wanna put more money in and you wanna catch up. Maybe you didn't max out, maybe you have extra money, so you wanna get it into the retirement account. So it's called a catch-up.

However, this rule only applies to the catch-up if you are 50 or older and you earned more than $150,000 in W-2 wages from an employer in 2025, and that catch-up goes into a Roth 401k, 403B, or TSP.

Now, I'm gonna tell you something that I'm sure most of you expect. I personally love this new rule. I love it because it's almost like it's forcing you to put your catch-ups—or some money—into a Roth retirement account if you are 50 or older and you earned more than $150,000 in W-2 wages from an employer in 2025.

Because many of you are just so stubborn and you go, “No, I want the write-off now. When I retire, I'm gonna be in a lower tax bracket.” Good luck, everybody.

However, it's almost like the government is saying you don't have a choice, because guess what? You don't. And I love that they're doing this.

But what happens if your employer doesn't have a Roth 401k option? Guess what? They either have to add one, or you're not gonna be allowed to make a catch-up contribution. Do you get that?

KT: So tell your boss to add it.

Suze: So most employers are now going to finally add a Roth option, KT, because I got news. Employees are gonna get really angry when catch-ups disappear simply because they didn't offer a Roth option.

Now, I have to tell you the truth. Normally, KT, I would stop at this point.

This is a lot, according to your face.

This is a lot, but I am not stopping here, because there is something that I have never talked about in all these years, but it's something at this point that I really want you to know.

KT: OK, here we go.

Suze: No, why is it that I want them to know this?

KT: I don't know.

Suze: I'm gonna tell you. All right, you're ready?

KT: I'm ready. Here we go. What is it?

Suze: It's because over all the years, KT, that people have been listening to me—and truly the majority of people listening to this podcast—they're 50, 60, 70, 80, even in their 40s and 30s.

And I got news for you. They are making a lot of money or they have a lot of money. They're still working. They've maxed out their 401ks or 403Bs. Now they don't know what to do to save for retirement, so they put it in an investment account.

Now I'm going to tell them what they can do if they still are working and they have extra money—what I want them to do with it.

KT: Listen up, listen up, everyone with that extra money. Listen up.

Suze: There is an IRS rule, and it's called 415(c).

415(c). Now I've never talked about this before, but you need to know about it, and it allows you in an employer plan to put in after-tax contributions into your 401k.

And the max—because there is a limit—the 415(c) max is $72,000 per employer, or $80,000 per employer if you are 50 or older.

You can only contribute up to the point of the max if you have earned at least that amount of money.

How do you get to that number if you are under 50? The $72,000 limit includes your employee contributions, which is $24,500 this year, and your employer match.

You would add all those together and subtract it from the $72,000 limit, and that is how much you can put in extra from your after-tax contribution.

I want all of you to listen to this again and again so that you understand it.

However, why am I talking to all of you about the 415(c) now when I never did previously?

Suze: Because now that it's mandatory—if you are 50 or older and you earned more than $150,000 in W-2 wages from an employer in 2025—your catch-up contributions have to go into a Roth 401k.

Now all corporations are going to start to offer a Roth 401k, and most of them, if you complain enough to them, will allow in-plan conversions.

Now you can have your cake and eat it too. If you have extra money that you're putting into an investment account for your retirement, now you would put it in via a 415(c) into your traditional 401k and immediately convert it, if allowed, to your Roth 401k.

So the reason for this podcast today is this: 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.

So here's what I need you to do. Number one, I need you to look at your 2025 W-2 wages. You need to know what did you make? What is on your W-2?

All right, then you need to call your HR department and ask if they have the ability to support Roth catch-ups, because you need to know if you're going to be allowed to do a catch-up in your 401k plan.

You need to know that, especially if you're 50 or older and you earned more than $150,000 in W-2 wages from an employer in 2025.

You also need to ask them if they allow after-tax contributions into your 401k plan.

And ask them if they allow in-plan conversions.

Once you know all that, then maybe you talk to your accountant or your CPA to adjust your withholdings or do whatever, since now we have a new tax strategy for all of you.

So here's what I want all of you to do, because I can tell you by KT's face she could not be more confused if she tried, correct?

KT: Yeah, I'm a little confused.

Suze: A lot confused.

So if you have questions about this, I want you to write them to asksuzepodcast@gmail.com.

KT: Keep them short.

Suze: Keep them short. Don't necessarily post on the wall. Keep them short and I'll answer.

I'll give them to Suze if you keep them short.

This coming Thursday, we will answer any questions that you happen to be confused about.

Now, on the wall, however, today I will post a summary of all of these things that I just said—the amounts, the this and that—that you can just kind of copy and print out.

For all of you that don't know, we have a Women and Money Community app. Just download it on Apple Apps or Google Play. Obviously it's free.

You'll see little boxes, and there is a wall, and that's where all of you talk to one another once in a while. I go on there as well, but that's where I will list everything that I just said today in a very simple format in terms of the amounts.

Does that help you, KT?

KT: Yeah, I love that. Then I can read what to do and get it done.

Suze: Right. Also, all of you do not forget to go to my YouTube channel, youtube.com/SuzeOrman, where you never know when KT and I this year may start to actually video these podcasts.

KT: Oh my God, really?

Suze: Yes, the two of us. Now that we're back in Florida, maybe we'll go to a real studio and do it. You know, early this morning we started to do this podcast and in the middle of us doing it what happened, KT?

KT: The fire alarm went off.

Suze: In the building. So then we had to listen to it for an hour and I said, you know, KT, it's a little different than when we were on the island. So we'll figure that out.

However, I hope you're happy that we're back. I hope you understand why I chose to do this particular podcast.

Remember, you can still fund your 2025 Roth IRAs and traditional IRAs—if you wanna do a traditional—up till April 15th of this year, but use 2025 MAGI limits and the limits for 2025 if you're going to do so.

All right, Ms. Travis, how'd we do?

KT: That was a really tough opening of '26, not necessarily what I expected, but here's the good news.

Suze: What's the good news, girlfriend?

KT: If everyone follows this rule, you're gonna have—what do you call it—a mega retirement strategy.

Suze: Yeah, and I know a lot of you are probably sitting there thinking, “Suze, I don't even fully fund my retirement accounts now.” I get that.

But hopefully if you continue to listen to the Women and Money podcast enough—just like the majority of the people listening who, when they first started with me 30 years ago, had debt, some were living in their car, they didn't own any real estate—now the majority of them, honest to God, super rich, are multi-millionaires, maxed out their retirement accounts, own two homes, and now have extra money to invest.

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.

So until Thursday, when we will be answering your questions on this podcast, there's only one thing that we want you to remember for this new year, and what is it, girlfriend?

KT: People first, then money, then things, then Roth.

Suze: Now you stay safe. See you Thursday. Bye-bye.