If you tuned into the Suze Orman podcast today, you probably noticed she isn't pulling any punches. The "Women & Money" show—which, as she always reminds us, is for everyone smart enough to listen—just dropped a massive update on how we need to handle our retirement accounts in 2026.
Honestly, it’s a lot to take in.
Suze is currently obsessed with what she calls her "boyfriend," the Roth IRA. But this isn't just her usual "I love Roth" speech. There are new federal laws and contribution limits for 2026 that will fundamentally change how you save, especially if you’re over 50 or making a decent living.
The 2026 "Super Catch-Up" and New Limits
Most people are still used to the old numbers. Forget them. For 2026, the contribution limits have shifted.
If you are under 50, you can now put $7,500 into your Roth or Traditional IRA. If you’ve hit the big 5-0, that number jumps to $8,600.
Why the weird $1,100 difference?
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In the past, that "catch-up" amount was always a flat $1,000. But thanks to new legislation, that catch-up is now indexed for inflation. Suze explains that this is a "huge win" for older savers who are trying to make up for lost time.
But the real shocker—the thing that made her co-host KT go "What?" on a recent episode—is the rule for high earners.
The $150,000 Threshold
If you earned more than $150,000 in W-2 wages in 2025, the IRS has a surprise for you this year. You are no longer allowed to put your "catch-up" contributions into a Traditional, pre-tax 401(k) or 403(b).
You must put those extra dollars into a Roth account.
Suze actually thinks this is a blessing in disguise. Why? Because she believes tax rates are going nowhere but up. By forcing you to pay the taxes now and letting that money grow tax-free forever, the government is inadvertently doing you a favor.
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Why Suze is Worried About Your "Eight-Month" Fund
It wouldn't be a Suze Orman podcast without a stern warning about your emergency savings.
While most financial advisors tell you that three to six months of expenses is "enough," Suze is doubling down on her eight-month rule. She’s seeing signs that the economy might be losing steam in 2026.
- Recessions don't give you a heads-up.
- Unemployment doesn't send a calendar invite.
- Inflation is still sticky. She basically told listeners today that if you only have a month or two of savings, you need to "push yourself hard" to build that wall of security. It’s about the peace of mind that comes from knowing you don't have to sell your stocks when the market is down just to pay your rent.
The "Mega Backdoor" Confusion
Lately, the "Ask KT & Suze Anything" episodes have been flooded with questions about the Mega Backdoor Roth strategy.
Here's the gist: Some 401(k) plans allow you to make "after-tax" contributions (which are different from Roth contributions) and then immediately convert them to a Roth. For 2026, the total limit for these types of contributions (Section 415c) has climbed to a staggering $72,000 for those under 50 and $80,000 for those 50 and older.
But be careful.
Suze warned a listener named Shelby that you can't just dive into this if you don't understand the Pro Rata Rule. If you have a Traditional IRA sitting out there with a bunch of pre-tax money, trying to do a "Backdoor Roth" can trigger a tax bill you weren't expecting.
However—and this is a big "however"—Suze clarified that your employer-sponsored 401(k) is a different beast. The rules that apply to your individual IRAs don't necessarily mess with your workplace 401(k) conversions.
Social Security: The 2.8% Reality Check
We also got the official word on the 2026 Social Security Cost-of-Living Adjustment (COLA).
It's set at 2.8%.
Suze knows this feels low. When your grocery bill is up 3% and your utilities have spiked 5%, a 2.8% raise feels like a joke. She explained that the calculation is based on the third quarter of the previous year, which often lags behind what we're actually feeling at the gas pump.
Her advice? If you are at least 62 but don't need the money yet, wait.
Every year you delay past age 62 (up until age 70), your benefit grows. Plus, you still get those annual COLAs added to your future check even while you're waiting. It’s the closest thing to a "guaranteed" return you're going to find.
Actionable Next Steps for Your Money
The Suze Orman podcast today isn't just for listening; it's for doing. Based on the latest updates, here is what you should actually do with your cash right now:
- Check your 2025 W-2. If your wages were over $150,000, call your HR department immediately. You need to ensure your catch-up contributions are going into the Roth 401(k) side of your plan, not the Traditional side.
- Adjust your automated transfers. If you're 50+, you can now save $8,600 in your IRA. Most people have their transfers set to the old $8,000 limit. You’re leaving "tax-free growth" on the table if you don't bump that up.
- Audit your "Must-Have" documents. Suze mentioned that regardless of the market, you are financially vulnerable if you don't have a Revocable Living Trust, a Will, and a Durable Power of Attorney.
- Stop the "Traditional" habit. If your employer offers a Roth 401(k), Suze’s stance is clear: put your new contributions there. The upfront tax break is a "trap" when you consider that taxes will likely be higher when you retire.
The world of 2026 finance is getting more complicated, but the core Suze-ism remains: People first, then money, then things. Protect your future by taking advantage of these higher limits now, before the rules change again.