1 00:00:08,130 --> 00:00:12,789 KT: Hey everybody, it's KT and Suze here, and today is 2 00:00:13,090 --> 00:00:17,690 KT: the beginning of 2026 Women and Money podcast. 3 00:00:17,850 --> 00:00:19,170 Suze: What's the date, KT? 4 00:00:19,569 --> 00:00:21,559 KT: January 4th. Do you believe it? 5 00:00:22,649 --> 00:00:23,729 Suze: 2026. 6 00:00:23,760 --> 00:00:24,968 KT: So it's still Happy New Year. 7 00:00:25,520 --> 00:00:29,670 Suze: It's Happy New Year, yes, but you have to welcome everybody. 8 00:00:29,770 --> 00:00:32,970 KT: Welcome to the Women and Money podcast and today's special. 9 00:00:32,970 --> 00:00:35,790 Suze: No, you gotta do it right, KT, come on. 10 00:00:36,799 --> 00:00:39,319 KT: Welcome to the Women and Money podcast and ask KT 11 00:00:39,319 --> 00:00:42,659 KT: and Suze. All right, welcome to the Women and Money 12 00:00:42,659 --> 00:00:45,880 KT: podcast 2026. This is Suze School. 13 00:00:46,240 --> 00:00:50,418 Suze: All right, let's stop, everybody. You would think by the time 14 00:00:50,569 --> 00:00:54,150 Suze: we've gone into this many years, KT would get it right, 15 00:00:54,360 --> 00:00:58,159 Suze: wouldn't you? Welcome to the Women and Money podcast and 16 00:00:58,159 --> 00:01:00,680 Suze: everybody's smart enough to listen. 17 00:01:01,580 --> 00:01:03,060 KT: It's Suze School. 18 00:01:03,459 --> 00:01:04,300 Suze: And Suze just schooled you. 19 00:01:04,980 --> 00:01:07,800 KT: Oh my God, wait till you hear what she has 20 00:01:07,800 --> 00:01:11,139 KT: in store today, and that's why I'm sitting in here 21 00:01:11,139 --> 00:01:13,540 KT: with her. None of you are gonna 22 00:01:14,260 --> 00:01:15,019 KT: understand it. 23 00:01:16,489 --> 00:01:20,370 Suze: I was trying to explain, KT this morning asked me, Suze, 24 00:01:20,610 --> 00:01:23,849 Suze: what are we gonna do for the first podcast of 25 00:01:23,849 --> 00:01:26,629 Suze: the year that we're doing? And I said, first of all, KT, 26 00:01:26,690 --> 00:01:29,849 Suze: it's Suze School. I'm doing. And I started to explain 27 00:01:29,849 --> 00:01:31,768 Suze: to her what it was and what did you say? 28 00:01:32,089 --> 00:01:34,760 KT: No one is gonna get it, and you need me 29 00:01:34,760 --> 00:01:37,510 KT: in there to ask questions or to 30 00:01:37,849 --> 00:01:40,690 KT: listen, because if I don't get it, they're not gonna 31 00:01:40,690 --> 00:01:40,930 KT: get it. 32 00:01:41,040 --> 00:01:44,349 Suze: Now, why do you all think that she doesn't think 33 00:01:44,349 --> 00:01:45,889 Suze: you're gonna get it? Everybody? 34 00:01:46,529 --> 00:01:49,489 KT: All right, simple four-letter word and the word is Roth. R-O-T-H. 35 00:01:50,169 --> 00:01:53,569 Suze: Now for those of you who are new to the 36 00:01:53,569 --> 00:01:55,430 Suze: Women in Money podcast, 37 00:01:55,489 --> 00:01:57,129 KT: and everyone's smart enough to listen. 38 00:01:57,489 --> 00:02:01,809 Suze: Oh, thank you, KT. What you have to know about KT, 39 00:02:02,639 --> 00:02:06,889 Suze: is this: Roth's my favorite retirement account totally does her in. 40 00:02:08,960 --> 00:02:12,679 Suze: She just goes nuts with them. So that's why she 41 00:02:12,679 --> 00:02:14,639 Suze: thought she needed to be here today. 42 00:02:15,720 --> 00:02:20,359 KT: Suze's starting the new year with her boyfriend Roth and 43 00:02:20,360 --> 00:02:24,559 KT: all of these accounts that are so confusing, but they're 44 00:02:24,559 --> 00:02:27,758 KT: really important because we're all gonna benefit from them. 45 00:02:28,220 --> 00:02:31,519 KT: But they're very, very confusing, so you need to listen 46 00:02:31,520 --> 00:02:32,979 KT: up and you need to listen 47 00:02:32,979 --> 00:02:33,470 KT: carefully. 48 00:02:33,619 --> 00:02:37,699 Suze: So right now, Suze School is in session, but I 49 00:02:37,699 --> 00:02:41,300 Suze: am telling all of you, you have got to take 50 00:02:41,300 --> 00:02:47,179 Suze: out your Suze notebooks because it's possible or probable you 51 00:02:47,179 --> 00:02:52,259 Suze: have no idea about what I am going to tell 52 00:02:52,258 --> 00:02:53,419 Suze: you today. 53 00:02:53,830 --> 00:02:55,990 Suze: So we'll just kind of sit here and we'll wait 54 00:02:55,990 --> 00:02:58,949 Suze: KT for them to out their notebooks. How was your 55 00:02:58,949 --> 00:02:59,610 Suze: New Year's? 56 00:02:59,869 --> 00:03:00,789 KT: It was great. 57 00:03:01,630 --> 00:03:04,529 KT: Tell everybody what we did. All right, so we're back 58 00:03:04,529 --> 00:03:07,070 KT: in Florida. You all know that we're no longer living 59 00:03:07,070 --> 00:03:08,948 KT: in the Bahamas. We're back in Florida. 60 00:03:09,490 --> 00:03:13,210 KT: We have this fabulous cozy little condo and we looked 61 00:03:13,210 --> 00:03:15,649 KT: at each other and said we're not going to parties, 62 00:03:15,690 --> 00:03:19,809 KT: we're not gonna watch Anderson and Andy drop the Ball 63 00:03:19,809 --> 00:03:22,089 KT: on New Year's Eve in Times Square we're gonna do 64 00:03:22,089 --> 00:03:24,229 KT: something very different she said what? 65 00:03:24,740 --> 00:03:27,179 KT: I said I'm gonna make a big bowl of popcorn 66 00:03:27,419 --> 00:03:32,820 KT: and we're gonna watch the Landman series and binge it 67 00:03:32,820 --> 00:03:37,289 KT: until 2026 and that's exactly what we did. So it's, 68 00:03:37,330 --> 00:03:38,660 KT: it was so great. 69 00:03:38,979 --> 00:03:42,309 Suze: So Landman, for those of you who don't know, it, 70 00:03:43,300 --> 00:03:45,220 Suze: I don't know how you get it, but you should 71 00:03:45,220 --> 00:03:48,059 Suze: get it. It is worth every single penny of it. 72 00:03:48,139 --> 00:03:51,860 Suze: Number one, there are two seasons we did the entire 73 00:03:51,860 --> 00:03:53,580 Suze: first season, which was 10. 74 00:03:54,110 --> 00:03:55,220 KT: Episodes. 75 00:03:55,509 --> 00:03:56,729 Suze: The second season, 76 00:03:56,830 --> 00:03:57,820 KT: Seven episodes. 77 00:03:58,110 --> 00:03:59,830 Suze: Well, now, as of today, eight. 78 00:04:00,960 --> 00:04:03,779 KT: The eighth episode is after this podcast. I'm going right into, right into it. 79 00:04:05,360 --> 00:04:07,990 Suze: All right, KT, I think they all have their notebooks out? 80 00:04:07,990 --> 00:04:09,990 KT: I thinks everyone's ready, Suze. 81 00:04:10,190 --> 00:04:15,830 Suze: All right, so here we go. Suze School with my 82 00:04:15,830 --> 00:04:20,488 Suze: most favorite pupil of all, KT, is ready to begin. 83 00:04:21,299 --> 00:04:23,779 Suze: Now hopefully all of you know that there are two 84 00:04:23,779 --> 00:04:29,459 Suze: kinds of retirement accounts traditional or pre-tax ones and Roth 85 00:04:29,459 --> 00:04:34,419 Suze: or after-tax ones. So the contribution limits I'm about to 86 00:04:34,420 --> 00:04:38,339 Suze: tell you are the same for traditional IRAs as they 87 00:04:38,339 --> 00:04:42,820 Suze: are for Roths, as well as traditional and Roth for 88 00:04:42,820 --> 00:04:48,239 Suze: employer plans. However, let me just state now in my opinion. 89 00:04:48,829 --> 00:04:52,869 Suze: I really believe that the only place in most circumstances 90 00:04:52,869 --> 00:04:56,070 Suze: where you should be putting money is a Roth if 91 00:04:56,070 --> 00:04:59,260 Suze: it's available to you. So if you are going to 92 00:04:59,260 --> 00:05:03,070 Suze: contribute to a pre-tax plan, know the limits for contributions 93 00:05:03,070 --> 00:05:09,510 Suze: apply to both. However, I'm only addressing Roths today. So 94 00:05:09,510 --> 00:05:16,750 Suze: in 2026, the Roth IRA contribution limits are $7,500 if 95 00:05:16,750 --> 00:05:18,230 Suze: you are under 50. 96 00:05:18,769 --> 00:05:24,609 Suze: $8,600 if you are 50 or older, because that includes 97 00:05:24,829 --> 00:05:30,469 Suze: the $1,100 catch-up. So, if you're 50 or older, you're 98 00:05:30,470 --> 00:05:36,549 Suze: allowed to put in $1,100 more than the $7,500 if 99 00:05:36,549 --> 00:05:38,390 Suze: you are under 50. 100 00:05:39,410 --> 00:05:42,570 Suze: But here is what you need to know. You can 101 00:05:42,570 --> 00:05:46,010 Suze: only contribute up to the point of the max if 102 00:05:46,010 --> 00:05:49,709 Suze: you have earned at least that amount of money. 103 00:05:50,230 --> 00:05:53,589 Suze: So, for a Roth, you have to have earned at 104 00:05:53,589 --> 00:05:59,849 Suze: least $7,500 if you're under 50. $8,600 if you're 50 105 00:05:59,850 --> 00:06:03,190 Suze: or older, to put in the max. If you only 106 00:06:03,190 --> 00:06:08,190 Suze: earn $4,000 that is the max that you can put in. Now, 107 00:06:08,309 --> 00:06:12,769 Suze: let's talk about the income limits. If you are filing single, 108 00:06:13,420 --> 00:06:17,660 Suze: You can put the max of $7,500 or $8,600 if 109 00:06:17,660 --> 00:06:21,100 Suze: you are 50 or older, if your modified adjusted gross 110 00:06:21,100 --> 00:06:26,089 Suze: income is under $153,000. 111 00:06:27,160 --> 00:06:31,769 Suze: You can put in money all the way from 153,000 112 00:06:31,769 --> 00:06:36,989 Suze: to 168,000. However, it starts to decrease as you make 113 00:06:36,988 --> 00:06:42,459 Suze: more money. But after 168,000 of modified adjusted gross income, 114 00:06:42,678 --> 00:06:48,000 Suze: you no longer qualify for a contributory Roth. And again, 115 00:06:48,040 --> 00:06:50,500 Suze: a contributory Roth is where every year, 116 00:06:51,000 --> 00:06:54,230 Suze: you put in the money that we just talked about. 117 00:06:54,440 --> 00:06:56,269 Suze: You got that, KT? You're good. 118 00:06:56,399 --> 00:06:57,010 KT: I got that. 119 00:06:57,119 --> 00:06:59,959 Suze: All right. That means we're doing good, everybody. All right. 120 00:07:00,279 --> 00:07:05,558 Suze: If you are married, filing single, be careful here, and 121 00:07:05,559 --> 00:07:10,200 Suze: you are living with your spouse. You do not qualify 122 00:07:10,200 --> 00:07:16,799 Suze: at all for a Roth if you make more than $10,000. 123 00:07:16,920 --> 00:07:18,000 Suze: Just know that. 124 00:07:18,519 --> 00:07:24,040 Suze: However, if you are married and filing separately everybody and 125 00:07:24,040 --> 00:07:28,100 Suze: you truly live apart from your spouse for the entire year, 126 00:07:28,519 --> 00:07:31,359 Suze: then you get to use the single Roth limits that 127 00:07:31,359 --> 00:07:34,720 Suze: I just told you about. But if you lived together 128 00:07:34,720 --> 00:07:36,239 Suze: even for one day, 129 00:07:36,549 --> 00:07:41,350 Suze: the Roth door practically slams shut on you. However, if 130 00:07:41,350 --> 00:07:44,630 Suze: you are married filing and jointly, you can do a 131 00:07:44,630 --> 00:07:47,679 Suze: full contribution up to the point of the max. If 132 00:07:47,679 --> 00:07:52,309 Suze: your modified adjusted gross income is under 242,000. 133 00:07:53,049 --> 00:07:58,549 Suze: And again from 242,000 to 252,000, the max starts to 134 00:07:58,549 --> 00:08:04,510 Suze: go down and once you've reached 252,000, you no longer 135 00:08:04,570 --> 00:08:10,209 Suze: qualify for a contributory Roth. Now, besides the Roth KT, 136 00:08:10,369 --> 00:08:11,890 Suze: you get, is this good so far? 137 00:08:12,089 --> 00:08:13,750 KT: Yeah, I'm trying to follow. 138 00:08:14,559 --> 00:08:17,040 KT: I'm trying to follow. Being being honest. It's, it's a 139 00:08:17,040 --> 00:08:18,059 KT: little complicated. 140 00:08:18,279 --> 00:08:21,640 Suze: But KT, these are contributions that everybody should know. I'm 141 00:08:21,640 --> 00:08:26,959 Suze: just reviewing in case you're new, everybody, to Roth's, and 142 00:08:26,959 --> 00:08:29,750 Suze: what we learned, by the way, at the dinner that 143 00:08:29,750 --> 00:08:32,630 Suze: we were at on the 30th, we went out to 144 00:08:32,630 --> 00:08:35,479 Suze: dinner with a whole bunch of new people that we 145 00:08:35,479 --> 00:08:36,039 Suze: had met. 146 00:08:37,380 --> 00:08:38,219 Suze: They had no idea. 147 00:08:38,299 --> 00:08:41,739 KT: No one at the table knew about, well, some people did, 148 00:08:41,809 --> 00:08:43,099 KT: but most did not. 149 00:08:43,780 --> 00:08:44,330 Suze: Have a clue. 150 00:08:44,489 --> 00:08:47,070 KT: These were really successful people. 151 00:08:47,070 --> 00:08:49,069 Suze: And I was just like, what? 152 00:08:49,619 --> 00:08:50,179 Suze: So anyway, 153 00:08:50,299 --> 00:08:51,210 KT: Me too. I like, I know more than them. 154 00:08:53,500 --> 00:08:55,940 Suze: So since I told all of them to tune in, 155 00:08:56,099 --> 00:08:59,299 Suze: here we go, and this is for them since they've 156 00:08:59,299 --> 00:09:01,260 Suze: tuned in. Now listen, 157 00:09:01,869 --> 00:09:05,309 Suze: besides a Roth, a contributory Roth, an IRA which you 158 00:09:05,309 --> 00:09:07,150 Suze: can do on your own, and you can do it 159 00:09:07,150 --> 00:09:11,010 Suze: at any brokerage firm wherever you wanna do it. If 160 00:09:11,010 --> 00:09:14,909 Suze: you work for an employer, you can also have your 161 00:09:14,909 --> 00:09:20,270 Suze: Roth IRAs and either a Roth 401k, a Roth 403B, 162 00:09:20,349 --> 00:09:25,289 Suze: or TSP depending on what your employer offers. So... 163 00:09:25,989 --> 00:09:30,429 Suze: Most places that you work for offer a Roth version 164 00:09:30,429 --> 00:09:33,109 Suze: as well as a traditional one, but you listen to 165 00:09:33,109 --> 00:09:36,030 Suze: me and you listen to me closely, I only want 166 00:09:36,030 --> 00:09:39,429 Suze: you to do a Roth if it is offered. 167 00:09:40,219 --> 00:09:45,900 Suze: Now, let's go over the contribution limits for 2026, cause 168 00:09:45,900 --> 00:09:53,179 Suze: they have changed everybody. The employee contribution limits are $24,500 169 00:09:53,179 --> 00:09:59,119 Suze: if you're under 50. $32,500 if you're 50 or older, 170 00:09:59,659 --> 00:10:03,699 Suze: cause that includes an $8,000 catch-up. 171 00:10:04,309 --> 00:10:07,630 Suze: Now KT, when I was telling her about that this morning, 172 00:10:07,940 --> 00:10:10,739 Suze: she said, so you have to put in all $8,000. 173 00:10:10,950 --> 00:10:14,348 Suze: I said, no, that's the max catch-up, but you can 174 00:10:14,349 --> 00:10:18,030 Suze: put in an extra $1000 3000 dollars, but the max 175 00:10:18,030 --> 00:10:23,760 Suze: catch-up is $8000. But if you are between 176 00:10:24,349 --> 00:10:32,869 Suze: 60 and 63 you get the super catch-up which is $11,250. 177 00:10:33,270 --> 00:10:38,709 Suze: So in the years 60, 61, 62, and 63, you 178 00:10:38,710 --> 00:10:42,358 Suze: can put in $11,250 more, 179 00:10:43,330 --> 00:10:46,890 Suze: than what somebody under 50 can put in. So this 180 00:10:46,890 --> 00:10:52,809 Suze: year it would be a total of $35,750. 181 00:10:53,780 --> 00:10:59,459 Suze: Now, your employer match does not count towards your employee limit, 182 00:10:59,580 --> 00:11:04,239 Suze: just so you are clear on that. Not all employers match, 183 00:11:04,580 --> 00:11:08,520 Suze: but most of them do. However, once again, 184 00:11:09,280 --> 00:11:12,869 Suze: just like I told you with the IRA limits, that 185 00:11:12,869 --> 00:11:16,510 Suze: the max is 100% of what you earned, whichever one 186 00:11:16,510 --> 00:11:19,789 Suze: is less or whatever the max is, or whatever you earn, 187 00:11:19,869 --> 00:11:26,200 Suze: whichever one is less, that also applies to your 401k, 188 00:11:26,270 --> 00:11:30,789 Suze: 403B TSP and the catch-up, just so you know. Now, 189 00:11:30,840 --> 00:11:34,330 Suze: here's the real reason for the podcast today. 190 00:11:35,380 --> 00:11:38,659 Suze: Because most of you knew exactly what I've already told you, 191 00:11:38,739 --> 00:11:40,400 Suze: except we have new limits. 192 00:11:41,390 --> 00:11:48,469 Suze: Starting January 1st, 2026, and I want you to pay 193 00:11:48,469 --> 00:11:52,949 Suze: attention here, OK? If you are 50 or older and 194 00:11:52,950 --> 00:12:00,469 Suze: you earned more than $150,000 in W-2 wages from an 195 00:12:00,469 --> 00:12:02,710 Suze: employer in 2025. 196 00:12:03,549 --> 00:12:08,728 Suze: Then every dollar of your catch-up contribution has to go 197 00:12:08,909 --> 00:12:13,989 Suze: to a Roth, and that's where KT went, What? What? 198 00:12:14,390 --> 00:12:15,289 Suze: So again, 199 00:12:16,369 --> 00:12:21,329 Suze: A catch-up contribution is what you voluntarily want to put 200 00:12:21,330 --> 00:12:25,090 Suze: in once you turn 50 or older, cause you wanna 201 00:12:25,090 --> 00:12:28,210 Suze: put more money and you wanna catch-up on maybe you 202 00:12:28,210 --> 00:12:30,809 Suze: didn't max out, maybe you have extra money, so you 203 00:12:30,809 --> 00:12:34,789 Suze: wanna get it into the retirement account. So, it's called 204 00:12:34,789 --> 00:12:36,650 Suze: a catch-up. However... 205 00:12:37,820 --> 00:12:42,900 Suze: This rule only applies to the catch-up if you are 206 00:12:42,900 --> 00:12:50,140 Suze: 50 or older and you earned more than $150,000 in 207 00:12:50,140 --> 00:12:57,000 Suze: W-2 wages from an employer in 2025 that goes into 208 00:12:58,140 --> 00:13:04,979 Suze: a Roth 401k, 403B, or TSP. Now, I'm gonna tell 209 00:13:04,979 --> 00:13:07,200 Suze: you something that I'm sure most of you expect. 210 00:13:07,869 --> 00:13:12,219 Suze: I personally love this new rule. I love it because 211 00:13:12,229 --> 00:13:15,319 Suze: it's almost like it's forcing you to put your catch-ups 212 00:13:15,320 --> 00:13:18,950 Suze: or some money in a Roth retirement account if you 213 00:13:18,950 --> 00:13:25,988 Suze: are 50 or older and you earned more than $150,000 214 00:13:25,989 --> 00:13:30,989 Suze: in W-2 wages from an employer in 2025. 215 00:13:31,989 --> 00:13:34,750 Suze: Because many of you are just so stubborn and you go, no, 216 00:13:34,830 --> 00:13:37,390 Suze: I want the write-off now. When I retire, I'm gonna 217 00:13:37,390 --> 00:13:41,549 Suze: be in a lower tax bracket. Good luck, everybody. However, 218 00:13:41,830 --> 00:13:44,679 Suze: it's almost like the government is saying, you don't have 219 00:13:44,679 --> 00:13:49,010 Suze: a choice, cause guess what? You don't. And I love 220 00:13:49,080 --> 00:13:53,429 Suze: that they're doing this. But what happens if your employer 221 00:13:53,429 --> 00:13:56,729 Suze: doesn't have a Roth 401k option? 222 00:13:57,469 --> 00:14:00,669 Suze: Guess what? They either have to add one or you're 223 00:14:00,669 --> 00:14:05,429 Suze: not gonna be allowed to make a catch-up contribution. Do 224 00:14:05,429 --> 00:14:06,150 Suze: you get that? 225 00:14:06,150 --> 00:14:08,738 KT: So tell your boss to add it. 226 00:14:08,950 --> 00:14:12,590 Suze: So most employees are now going to finally add a 227 00:14:12,590 --> 00:14:16,869 Suze: Roth option, KT, because I got news. Employees are gonna 228 00:14:16,869 --> 00:14:23,190 Suze: get really angry when catch-ups disappear simply because they didn't 229 00:14:23,190 --> 00:14:25,229 Suze: offer a Roth option. 230 00:14:26,000 --> 00:14:28,640 Suze: Now, I have to tell you the truth. Normally, KT, 231 00:14:28,760 --> 00:14:30,320 Suze: I would stop at this point. 232 00:14:31,039 --> 00:14:34,659 Suze: Because this is a lot, according to your face. 233 00:14:36,150 --> 00:14:39,409 Suze: This is a lot, but I am not stopping here 234 00:14:39,989 --> 00:14:42,690 Suze: because there is something that I have never talked about 235 00:14:43,070 --> 00:14:46,849 Suze: in all these years, but it's something at this point 236 00:14:47,190 --> 00:14:49,169 Suze: that I really want you to know. 237 00:14:49,270 --> 00:14:50,239 KT: OK, here we go. 238 00:14:50,349 --> 00:14:52,820 Suze: No, why is that I want them to know this? 239 00:14:52,909 --> 00:14:53,809 KT: I don't know. 240 00:14:54,190 --> 00:14:56,909 Suze: I'm gonna tell you. All right, you're ready? 241 00:14:57,010 --> 00:14:57,419 KT: I'm ready. 242 00:14:57,869 --> 00:14:58,250 KT: Here we go. What is it? 243 00:14:59,190 --> 00:15:02,530 Suze: It's because over all the years, KT. 244 00:15:03,059 --> 00:15:05,679 Suze: That the people have been listening to me and truly 245 00:15:05,820 --> 00:15:09,059 Suze: the majority of people that are listening to this podcast, 246 00:15:09,099 --> 00:15:13,770 Suze: they're 50, 60, 70, 80, even in their 40s, their 30s, 247 00:15:13,979 --> 00:15:16,219 Suze: and I got news for you, they are making a 248 00:15:16,219 --> 00:15:20,309 Suze: lot of money or they have a lot of money. 249 00:15:20,419 --> 00:15:24,510 Suze: They're still working. They've maxed out their 401ks or 403bs. 250 00:15:24,700 --> 00:15:27,380 Suze: Now they don't know what to do to save for retirement, 251 00:15:27,659 --> 00:15:29,960 Suze: so they put it in an investment account. 252 00:15:31,500 --> 00:15:33,900 Suze: Now I'm going to tell them what they can do 253 00:15:33,900 --> 00:15:38,119 Suze: if they still are working and they have extra money 254 00:15:38,380 --> 00:15:41,489 Suze: what I want them to do with it. 255 00:15:43,099 --> 00:15:47,119 KT: Listen up, listen up, everyone with that extra money, listen up. 256 00:15:48,349 --> 00:15:54,489 Suze: There is an IRS rule, and it's called 415C. 257 00:15:55,489 --> 00:16:00,809 Suze: 415C. Now I've never talked about this before, but you 258 00:16:00,809 --> 00:16:05,650 Suze: need to know about it, and it allows you in 259 00:16:05,650 --> 00:16:15,210 Suze: an employer plan to put in after-tax contributions into your 401k. 260 00:16:16,049 --> 00:16:20,169 Suze: And the max, because there is a limit, the 415 261 00:16:20,169 --> 00:16:29,210 Suze: max is ready: $72,000 per employer or $80,000 per employer 262 00:16:29,210 --> 00:16:32,010 Suze: if you are 50 or older. 263 00:16:32,960 --> 00:16:35,760 Suze: You can only contribute up to the point of the 264 00:16:35,760 --> 00:16:40,750 Suze: max if you have earned at least that amount of money. 265 00:16:41,190 --> 00:16:44,280 Suze: How do you get to that number? If you are 266 00:16:44,280 --> 00:16:52,119 Suze: under 50? The $72,000 limit includes your employee contributions, which 267 00:16:52,119 --> 00:16:58,729 Suze: is $24,500 this year, and your employer match. You would 268 00:16:58,729 --> 00:17:01,059 Suze: add all those together 269 00:17:01,510 --> 00:17:05,530 Suze: and minus it from the 72,000 limit. 270 00:17:06,558 --> 00:17:09,629 Suze: And that is how much you can put in extra 271 00:17:09,739 --> 00:17:15,088 Suze: from your after-tax contribution. I want all of you to 272 00:17:15,088 --> 00:17:19,909 Suze: listen to this again and again so that you understand it. However, 273 00:17:20,208 --> 00:17:22,408 Suze: why am I talking to all of you about the 274 00:17:22,409 --> 00:17:27,149 Suze: 415 now when I never did previously? 275 00:17:27,790 --> 00:17:31,949 Suze: Because now that it's mandatory if you are 50 or 276 00:17:31,949 --> 00:17:39,729 Suze: older and you earned more than $150,000 in W-2 wages 277 00:17:40,030 --> 00:17:43,050 Suze: from an employer in 2025... 278 00:17:43,810 --> 00:17:49,140 Suze: Your catch-up contributions have to go into a Roth 401k. 279 00:17:49,739 --> 00:17:54,379 Suze: Now all corporations are going to start to offer a 280 00:17:54,380 --> 00:17:59,719 Suze: Roth 401k, and most of them, if you complain enough 281 00:17:59,719 --> 00:18:06,099 Suze: to them to allow in-plan conversions, now you can have 282 00:18:06,099 --> 00:18:09,708 Suze: your cake and eat it too. Where if you have 283 00:18:09,709 --> 00:18:11,000 Suze: extra money, 284 00:18:11,500 --> 00:18:15,919 Suze: that you're putting in an investment account for your retirement 285 00:18:16,579 --> 00:18:20,729 Suze: now you would put it in via a 415C into 286 00:18:20,729 --> 00:18:26,260 Suze: your traditional 401k and immediately convert it, if allowed, to 287 00:18:26,260 --> 00:18:31,599 Suze: your Roth 401k. So the reason for this podcast today 288 00:18:32,380 --> 00:18:38,280 Suze: is this is how you build up a massive tax-free 289 00:18:38,400 --> 00:18:40,079 Suze: retirement account. 290 00:18:41,339 --> 00:18:45,140 Suze: This is how you do it, but you have to 291 00:18:45,140 --> 00:18:47,969 Suze: know if you are allowed to do it or not. 292 00:18:48,459 --> 00:18:51,560 Suze: So here's what I need you to do. Number one, 293 00:18:51,900 --> 00:18:56,739 Suze: I need you to look at your 2025 W-2 wages. 294 00:18:56,839 --> 00:19:00,060 Suze: You need to know what did you make? What is 295 00:19:00,060 --> 00:19:04,180 Suze: on your W-2? All right, then you need to call 296 00:19:04,180 --> 00:19:05,780 Suze: your HR department 297 00:19:06,400 --> 00:19:11,040 Suze: and ask if they have the ability to support Roth 298 00:19:11,040 --> 00:19:14,319 Suze: catch-ups because you need to know if you're going to 299 00:19:14,319 --> 00:19:19,839 Suze: be allowed to do a catch-up in your 401k plan. 300 00:19:20,119 --> 00:19:23,899 Suze: You need to know that, especially if you're 50 and older, 301 00:19:24,239 --> 00:19:31,560 Suze: and you earned more than $150,000 in W-2 wages from 302 00:19:31,560 --> 00:19:34,280 Suze: an employer in 2025. 303 00:19:35,140 --> 00:19:40,339 Suze: You also need to ask them if they allow after-tax 304 00:19:40,339 --> 00:19:45,260 Suze: contributions into your 401k plan. 305 00:19:45,739 --> 00:19:52,579 Suze: And ask them if they allow in-plan conversions. Once you 306 00:19:52,579 --> 00:19:56,209 Suze: know all that, then maybe you talk to your accountant 307 00:19:56,209 --> 00:20:00,040 Suze: or your CPA to adjust your withholdings to do whatever, 308 00:20:00,250 --> 00:20:04,660 Suze: since now we have a new tax strategy for all 309 00:20:04,660 --> 00:20:05,218 Suze: of you. 310 00:20:06,380 --> 00:20:08,920 Suze: So here's what I want all of you to do, 311 00:20:09,010 --> 00:20:11,530 Suze: cause I can tell you by KT's face she could 312 00:20:11,530 --> 00:20:14,189 Suze: not be more confused if she tried, correct? 313 00:20:14,329 --> 00:20:15,688 KT: Yeah, I'm a little confused. 314 00:20:15,770 --> 00:20:19,449 Suze: A lot confused. So if you have questions about this, 315 00:20:19,650 --> 00:20:24,310 Suze: I want you to write them to ask Suze podcast@gmail.com. 316 00:20:25,339 --> 00:20:25,810 KT: Keep them short. 317 00:20:26,130 --> 00:20:27,760 Suze: Keep them short. Don't necessarily post on the wall. 318 00:20:27,760 --> 00:20:30,810 Suze: Keep them short and I'll answer. I'll give them to 319 00:20:30,810 --> 00:20:31,810 Suze: Suze if you keep them short. 320 00:20:32,209 --> 00:20:36,170 Suze: This coming Thursday we will answer any questions that you 321 00:20:36,170 --> 00:20:41,988 Suze: happen to be confused about this. Now, on the wall, however, 322 00:20:42,890 --> 00:20:45,530 Suze: today I will post a summary 323 00:20:46,339 --> 00:20:50,739 Suze: of all of these things that I just said, the amounts, 324 00:20:50,859 --> 00:20:53,030 Suze: the this and that, that you can just kind of 325 00:20:53,030 --> 00:20:56,099 Suze: just copy and print out. For all of you that 326 00:20:56,099 --> 00:20:59,800 Suze: don't know, we have a Women and Money Community app. 327 00:21:00,530 --> 00:21:04,250 Suze: Just download it on Apple Apps or Google Play. Obviously 328 00:21:04,250 --> 00:21:07,770 Suze: it's free, and you'll see little boxes, and there is 329 00:21:07,770 --> 00:21:10,728 Suze: a wall, and that's where all of you talk to 330 00:21:10,729 --> 00:21:13,310 Suze: one another once in a while. I go on there 331 00:21:13,530 --> 00:21:17,890 Suze: as well, but that's where I will list everything that 332 00:21:17,890 --> 00:21:21,689 Suze: I just said today in a very simple format in 333 00:21:21,689 --> 00:21:24,469 Suze: terms of the amounts. Does that help you, KT? 334 00:21:24,619 --> 00:21:29,489 KT: Yeah, I love that. Then I can read what to do. 335 00:21:29,839 --> 00:21:30,879 KT: And get it done 336 00:21:30,880 --> 00:21:34,520 Suze: Right. Also, all of you do not forget to go 337 00:21:34,520 --> 00:21:40,160 Suze: to my YouTube channel, youtube.com/Suze Orman, where you never know 338 00:21:40,160 --> 00:21:44,209 Suze: when KT and I this year may start to actually 339 00:21:44,209 --> 00:21:46,339 Suze: video these podcasts. 340 00:21:46,469 --> 00:21:48,000 KT: Oh my God, really? 341 00:21:48,280 --> 00:21:51,709 Suze: Yes, the two of us, now that we're back in Florida, 342 00:21:51,819 --> 00:21:54,189 Suze: maybe we'll go to a real studio and do it. 343 00:21:54,400 --> 00:21:55,119 Suze: You know, early this 344 00:21:55,295 --> 00:21:58,185 Suze: morning we started to do this podcast and in the 345 00:21:58,185 --> 00:22:00,264 Suze: middle of us doing it what happened KT? 346 00:22:00,265 --> 00:22:01,804 KT: The fire alarm went off. 347 00:22:01,805 --> 00:22:04,175 Suze: In the building. So then we had to listen to 348 00:22:04,175 --> 00:22:05,964 Suze: it for an hour and I said, you know, KT, 349 00:22:06,135 --> 00:22:09,004 Suze: it's a little different than when we were on the island. 350 00:22:09,194 --> 00:22:12,925 Suze: So we'll figure that out. However, I hope you're happy 351 00:22:12,925 --> 00:22:16,265 Suze: that we're back. I hope you understand why I chose 352 00:22:16,265 --> 00:22:22,604 Suze: to do this particular podcast. Remember, you can still fund 353 00:22:23,050 --> 00:22:28,010 Suze: your 2025 Roth IRAs and traditional IRAs, if you wanna 354 00:22:28,010 --> 00:22:31,409 Suze: do a traditional, up till April 15th of this year, 355 00:22:31,689 --> 00:22:38,010 Suze: but use 2025 MAGI limits and the limits for 2025 356 00:22:38,010 --> 00:22:41,849 Suze: if you're going to do so. All right, Ms. Travis, 357 00:22:41,930 --> 00:22:42,829 Suze: how'd we do? 358 00:22:44,400 --> 00:22:49,079 KT: That was a really tough opening of '26, not necessarily 359 00:22:49,079 --> 00:22:52,089 KT: what I expected, but here's the good news. 360 00:22:52,089 --> 00:22:53,079 Suze: What's the good news, girlfriend? 361 00:22:53,150 --> 00:22:57,399 KT: If everyone follows this rule, you're gonna have what you 362 00:22:57,400 --> 00:23:00,369 KT: call it a mega retirement strategy. 363 00:23:00,469 --> 00:23:02,438 Suze: Yeah, and I know a lot of you are probably 364 00:23:02,439 --> 00:23:05,708 Suze: sitting there thinking, Susie, I don't even fully fund my 365 00:23:05,709 --> 00:23:07,800 Suze: retirement accounts now. I get that. 366 00:23:08,489 --> 00:23:10,979 Suze: But hopefully if you continue to listen to the Women 367 00:23:10,979 --> 00:23:14,900 Suze: and Money podcast enough, just like the majority of the 368 00:23:14,900 --> 00:23:18,219 Suze: people listening who when they first started with me 30 369 00:23:18,219 --> 00:23:21,099 Suze: years ago, they had debt. Some were living in their car, 370 00:23:21,140 --> 00:23:23,819 Suze: they didn't own any real estate. Now the majority of them, 371 00:23:23,900 --> 00:23:28,619 Suze: honest to God, super rich, are multi-millionaires, maxed out their 372 00:23:28,619 --> 00:23:32,639 Suze: retirement accounts, own two homes, and now have extra money 373 00:23:32,939 --> 00:23:33,680 Suze: to invest. 374 00:23:34,969 --> 00:23:36,698 Suze: For those of you who are going to be in 375 00:23:36,699 --> 00:23:40,478 Suze: that situation one day or who are in that situation now, 376 00:23:41,020 --> 00:23:46,208 Suze: this podcast was for you. So until Thursday, when we 377 00:23:46,209 --> 00:23:50,459 Suze: will be answering your questions on this podcast, there's only 378 00:23:50,459 --> 00:23:52,380 Suze: one thing that we want you to remember for this 379 00:23:52,380 --> 00:23:53,879 Suze: new year, and what is it, girlfriend? 380 00:23:54,140 --> 00:23:58,639 KT: People first, then money, then things, then Roth. 381 00:23:59,300 --> 00:24:02,199 Suze: Now you stay safe. See you Thursday. Bye-bye.