Digest

This episode of the Women and Money Podcast, hosted by Katie and Susie, focuses on financial security and introduces the 2026 Roth IRA and employer-sponsored retirement plan contribution limits. Susie explains the benefits of Roth accounts, contrasting them with traditional pre-tax options. Key details for 2026 include Roth IRA limits of $7,500 (under 50) and $8,600 (50+), and employer plan limits of $24,500 (under 50) and $32,500 (50+), with special catch-up provisions. A significant new rule mandates that individuals aged 50 and over earning over $150,000 must contribute their catch-up contributions to a Roth 401(k), 403(b), or TSP. The podcast also covers IRS Rule 415(c), allowing substantial after-tax contributions to employer plans, and provides actionable steps for listeners to implement these strategies, including checking W-2s, consulting HR, and working with a CPA. Listeners are encouraged to utilize community resources and can still fund their 2025 IRAs until April 15th.

Outlines

00:00:00

Financial Security and Podcast Introduction

The podcast begins by emphasizing the importance of financial security, highlighting Alliant Credit Union's savings account. Katie and Susie welcome listeners to the 2026 Women and Money Podcast, setting a positive tone for the New Year and introducing their Q&A segment.

00:02:17

Understanding Roth Retirement Accounts and 2026 Limits

Susie explains Roth retirement accounts, her preferred choice, and details the 2026 contribution limits for Roth IRAs ($7,500 under 50, $8,600 for 50+) and employer-sponsored plans like 401(k)s ($24,500 under 50, $32,500 for 50+). Income limitations for Roth IRA contributions in 2026 are also outlined for single and married filers.

00:12:02

New Roth Rules and Advanced Strategies

A new 2026 rule mandates that individuals aged 50+ earning over $150,000 must contribute catch-up funds to Roth 401(k)s, 403(b)s, or TSPs. Susie also discusses IRS Rule 415(c), enabling significant after-tax contributions to employer plans for building large tax-free retirement accounts. Actionable steps are provided for listeners to implement these strategies, including HR inquiries and CPA consultations.

00:20:48

Q&A, Community Resources, and Final Reminders

Listeners are invited to submit questions via email, with a summary of information available on the Women in Money Community app. Susie promotes her YouTube channel and shares a humorous recording anecdote. A final reminder is given to fund 2025 IRAs by April 15th using 2025 limits, emphasizing the importance of a "mega retirement strategy."

Keywords

Q&A

• What are the 2026 Roth IRA contribution limits?

  For 2026, individuals under 50 can contribute up to $7,500 to a Roth IRA. Those aged 50 and older can contribute up to $8,600, which includes an $1,100 catch-up contribution. Contributions cannot exceed earned income.

• What is the new rule for catch-up contributions for individuals aged 50 and older starting in 2026?

  Beginning in 2026, individuals aged 50 and older who earn over $150,000 in W-2 wages must contribute their catch-up contributions to a Roth 401(k), 403(b), or TSP, provided their employer offers a Roth option.

• How can after-tax contributions be utilized in employer plans under IRS Rule 415(c)?

  IRS Rule 415(c) permits after-tax contributions to employer plans up to a total limit of $72,000 annually (or $80,000 for those 50+). This limit encompasses employee and employer contributions, allowing for substantial after-tax contributions beyond those.

• What are the recommended steps to implement the new Roth strategy for 2026?

  Listeners should check their 2025 W-2 wages, inquire with their HR department about Roth catch-up support and after-tax contribution/conversion options, and consult their CPA to adjust tax withholdings accordingly.

Show Notes