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Transcript

Can My Spouse Fund My Roth? · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:08
  KT: Good morning, Suze.
• 0:09
  Suze: Good morning, Miss Travis. How are you today?
• 0:12
  KT: I feel pretty good. Little, little rainy and cold here
• 0:15
  KT: in South Florida.
• 0:17
  Suze: I know, right?
• 0:18
  KT: The weather's really strange.
• 0:20
  Suze: So strange, very strange, strange. But what is the date?
• 0:24
  KT: January 15th, 2026
• 0:27
  Suze: And welcome everybody to the Women and Money podcast as
• 0:30
  Suze: well as everybody smart enough to listen. Listen to my voice.
• 0:34
  KT: Yeah, it sounds good.
• 0:35
  Suze: Is it low? How low can you go? And today is
• 0:41
  Suze: ask KT and Suze anything. And if you have a
• 0:44
  Suze: question
• 0:45
  Suze: that you would like us to answer on the podcast,
• 0:48
  Suze: please write in Ask Suze SUZE podcast at gmail.com. And
• 0:54
  Suze: if KT chooses it,
• 0:56
  Suze: it will be answered on the podcast. Keep it short.
• 0:59
  Suze: There are thousands. How many did you see?
• 1:02
  KT: You had 2000, then 6000 the next day, right?
• 1:05
  Suze: So a lot comes in. That doesn't mean that you
• 1:08
  Suze: shouldn't try because obviously some are chosen. And again, many
• 1:11
  Suze: of you know I do peruse these, and if I
• 1:15
  Suze: see one that catches my eye, I will answer you directly.
• 1:20
  Suze: So tell everybody what we did.
• 1:22
  KT: We had the best weekend.
• 1:24
  Suze: Last weekend, yes.
• 1:25
  KT: So Suze and I went on a road trip and
• 1:29
  KT: it was our first road trip of 2026, and we
• 1:32
  KT: drove to...
• 1:33
  Suze: Well, KT, let's be honest, it was our first road
• 1:36
  Suze: trip in 14 years...
• 1:40
  KT: Since we moved from the Bahamas back to back to
• 1:43
  KT: where there's roads.
• 1:46
  KT: We drove 5 and a half hours to Amelia Island and it was spectacular.
• 1:52
  KT: It was really fun and...
• 1:55
  Suze: So wait, we went there because our two really good friends...
• 1:59
  KT: Lisa and Jill.
• 2:00
  Suze: Lisa and Jill...
• 2:01
  KT: Oprah friends.
• 2:02
  Suze: Oprah friends. So Lisa Halliday was the PR force behind.
• 2:07
  Suze: The Oprah Winfrey Show for God knows how many years
• 2:11
  Suze: and Jill Adams and still does so but was the
• 2:14
  Suze: one behind Oprah's Book Club for all those years picking
• 2:19
  Suze: and helping Oprah pick all of those books and we
• 2:24
  Suze: just love these girls more than you have any idea.
• 2:28
  Suze: And so they happened to be in Amelia Island with
• 2:32
  Suze: Lisa's parents, and we decided let's go have dinner with them.
• 2:38
  KT: We also had another reason to go to Amelia Island.
• 2:41
  Suze: Tell everybody why.
• 2:44
  KT: We love you, Lisa and Jill, but we were really
• 2:46
  KT: excited to go to Olive Amelia. Olive Amelia is a
• 2:51
  KT: little shop down in the, the village, like the main
• 2:54
  KT: street of Amelia Island, very quaint Victorian village.
• 2:59
  KT: And Olive Amelia's, the shop sells olive oil and vinegars,
• 3:04
  KT: and Suze and I are hooked on Sicilian lemon white
• 3:08
  KT: balsamic vinegar.
• 3:10
  Suze: That just comes from this one store.
• 3:12
  KT: We've been importing it. Well, well, we've been asking her
• 3:16
  KT: to send it to us.
• 3:17
  Suze: No, we haven't asked her to send it.
• 3:19
  KT: We have buying it now for like two or three
• 3:21
  KT: years in the Bahamas. We get this sent to us
• 3:24
  KT: because it's so delicious. We love it.
• 3:26
  KT: We put it on salad, fish. We put it on everything.
• 3:30
  Suze: So we went in to finally say, hi Laura, the
• 3:34
  Suze: woman who owns it. Look, it's us in person, and
• 3:38
  Suze: she couldn't believe it.
• 3:40
  KT: She posted a little movie, I think it's on her site, right?
• 3:44
  Suze: You know what? I didn't look...
• 3:45
  KT: We have to look.
• 3:46
  Suze: But I did a video telling everybody, this is not
• 3:48
  Suze: a paid announcement, by the way, right? Everybody, you gotta
• 3:52
  Suze: try this. So I'm just gonna say to all of you.
• 3:55
  Suze: If you wanna try something incredible, I'm telling you incredible,
• 4:00
  Suze: just do a little one. They have a very little
• 4:03
  Suze: tiny bottle for like $7 or $8. Try it.
• 4:07
  Suze: What's it called again?
• 4:08
  KT: It's Sicilian lemon, white balsamic vinegar.
• 4:11
  Suze: I promise you, if you try it, oh, I should,
• 4:14
  Suze: you know, we're gonna get him hooked on spending money.
• 4:17
  Suze: I think you wanna know something, KT? I think this
• 4:20
  Suze: is the first time in the history of the Suze
• 4:23
  Suze: Orman Show, the podcast, anything I've ever done...
• 4:26
  KT: Where you ask someone to buy something...
• 4:29
  Suze: But I promise you, if I promise you, oh my God, anyway,
• 4:33
  Suze: all right, go on.
• 4:34
  KT: All right, let's get this show started. So I have
• 4:37
  KT: a first question that's not even a question, it's a
• 4:40
  KT: statement from David, and David said.
• 4:44
  KT: Suze, I've been listening to you for 25 years.
• 4:48
  Suze: Makes me feel old. David.
• 4:50
  KT: The Sunday podcast this past Sunday was your best ever.
• 4:56
  KT: The greatest free advice out here. Welcome to Florida. My
• 5:00
  KT: family was from
• 5:01
  KT: Evergreen Park, thank you for what you do and God
• 5:05
  KT: bless you. That's from David.
• 5:07
  Suze: You know what I find funny about that, KT, is
• 5:10
  Suze: that David, a man, finds last Sunday's podcast, which was
• 5:15
  Suze: all about the market and what I thought, the best ever.
• 5:19
  Suze: But that wasn't the best ever because in my opinion
• 5:23
  Suze: because that was about money, just straight money, and it
• 5:28
  Suze: seems like men care more about when they write in,
• 5:32
  Suze: can you talk about money, can you talk about what
• 5:34
  Suze: stocks can you do this? I really think the best
• 5:38
  Suze: podcasts I've ever done on the Women and Money podcast
• 5:42
  Suze: are the ones that talk about emotions and
• 5:46
  Suze: the qualities of people, and fear and shame and anger,
• 5:51
  Suze: and those things, those are the ones I love the most,
• 5:55
  Suze: cause I have to tell you, if you don't have
• 5:58
  Suze: control over who you are,
• 6:00
  Suze: it doesn't matter what I tell you to buy. You
• 6:02
  Suze: will buy at the wrong time and sell at the
• 6:05
  Suze: wrong time. Just saying. But David, thank you so much
• 6:09
  Suze: for thinking that.
• 6:10
  KT: Yea David. That was the best ever for David, Suze.
• 6:13
  Suze: Well, actually, KT thought it was fabulous.
• 6:17
  KT: All right, so ready? Andrea wrote, Hi Suze, I've been
• 6:22
  KT: named the executor of three family members' individual wills. Boy,
• 6:27
  KT: they must all like Andrea. Is there information on this
• 6:31
  KT: app on what executors need to do once the family
• 6:35
  KT: member passes away? So thank you in advance and thank
• 6:39
  KT: you for sharing your knowledge and wisdom.
• 6:42
  Suze: Andrea, I want you to listen to me closely. Being
• 6:45
  Suze: an executor of a will, especially a will, if they
• 6:50
  Suze: have real estate in their names and all kinds of
• 6:53
  Suze: accounts in their names, and it's not in a trust,
• 6:57
  Suze: it is a big, big job.
• 7:01
  Suze: It's a big job because you are the one who's
• 7:04
  Suze: going to have to work with an attorney most likely
• 7:06
  Suze: to go through probate, pay the probate fees, make sure
• 7:10
  Suze: that everything is transferred the way that it should be.
• 7:13
  Suze: It is a job and what you really should do,
• 7:16
  Suze: because to tell you everything that an executor does would
• 7:20
  Suze: take up this whole podcast. So maybe you go on
• 7:23
  Suze: ChatGPT or you go somewhere and they'll list everything for
• 7:27
  Suze: you as to what an executor does. But
• 7:30
  Suze: if you have accepted this, you might also want to
• 7:34
  Suze: say to them, you know what, if they own a house,
• 7:37
  Suze: if they have certain things that really would have to
• 7:41
  Suze: go through probate, I'm here to tell you you should
• 7:44
  Suze: talk to them about getting a living revocable trust where
• 7:48
  Suze: you would become the successor trustee if anything were to
• 7:52
  Suze: happen to them. And what you would do is go
• 7:55
  Suze: to must-havedocs.com.
• 7:57
  Suze: And there you could get the must-have docs, which happened
• 8:00
  Suze: to be a will, a living revocable trust, an advanced directive,
• 8:05
  Suze: and durable power of attorney for healthcare, as well as
• 8:07
  Suze: one for finances. You just have to get one and
• 8:10
  Suze: share it among the three of them.
• 8:12
  Suze: Remember there is shareware there where if you buy it,
• 8:16
  Suze: you have the permission to share it with your family members.
• 8:19
  Suze: $99 will save you thousands of dollars in probate fees,
• 8:26
  Suze: maybe one or two years in settling the estate, making
• 8:30
  Suze: sure that it is not that hard on you, and
• 8:33
  Suze: it tells you everything you need to do in there
• 8:36
  Suze: just so you need to know. But as an executor,
• 8:39
  Suze: if all they have is a will.
• 8:43
  Suze: It's gonna be a big deal most likely for you.
• 8:45
  Suze: All right, go on.
• 8:46
  KT: So my next question, and Suze and I just told
• 8:49
  KT: you all that we get thousands of questions. So selecting them,
• 8:54
  KT: there's a little secret that I have in the subject
• 8:57
  KT: area on this question. It says frothy Rothy question.
• 9:01
  Suze: Well, tell everybody what a frothy is...
• 9:04
  KT: A frothy Rothy was a podcast we did last summer.
• 9:08
  KT: About the green drink that I make that we drink
• 9:12
  KT: as well in the summer we have a different drink
• 9:15
  KT: than in the winter, but, um, Frothy Rothy, you're gonna
• 9:18
  KT: have to go back and listen to that drink and
• 9:20
  KT: its recipe.
• 9:21
  Suze: But that's, that's not what I was gonna ask you.
• 9:23
  KT: What were you gonna ask me?
• 9:25
  Suze: See, she always thinks she knows what I'm gonna say.
• 9:27
  KT: OK, what were you gonna say?
• 9:28
  Suze: I want you to tell everybody for 2026, what is
• 9:35
  Suze: your new view on Roth's and all of that.
• 9:39
  KT: Oh, I'm gonna study that thing and know it inside, out,
• 9:42
  KT: upside down, back door, front door, side door, you name it.
• 9:46
  Suze: And what word are you never going to use again?
• 9:49
  KT: That it's too complicated.
• 9:51
  Suze: You're never gonna say that again, right?
• 9:53
  KT: No, it isn't.
• 9:54
  Suze: And you're never gonna think it again, right?
• 9:57
  KT: Never.
• 9:57
  Suze: There you go. All right, go on.
• 9:59
  KT: All right, she wrote, Angel wrote, hello, most fabulous ladies.
• 10:03
  KT: I think I remember you saying that we can buy
• 10:06
  KT: and sell as much as we want in our Roth
• 10:09
  KT: IRA
• 10:11
  KT: and it has no bearing on any other accounts.
• 10:14
  Suze: Correct.
• 10:15
  KT: And then she said, I worry there could be some
• 10:17
  KT: buying or selling rules in the Roth with timelines that
• 10:21
  KT: I don't know about. So.
• 10:23
  Suze: How would you answer that, KT?
• 10:25
  KT: I think that you're absolutely right.
• 10:27
  KT: There are no rules when it comes to buying and
• 10:30
  KT: selling within your Roth.
• 10:31
  Suze: Yeah, listen, everybody, the reason that I want you all
• 10:34
  Suze: to have Roth IRAs, Roth 401ks, Roth 403bs, Roth TSPs,
• 10:40
  Suze: Roth SEP IRAs, Roth Roth Roth Roth, everything is there
• 10:45
  Suze: are no taxes when you buy or sell.
• 10:49
  Suze: Following a few simple rules, meaning that the Roth has
• 10:52
  Suze: been open for at least five years and you're 59 and a half
• 10:56
  Suze: years of age, when you withdraw any amount of money,
• 11:00
  Suze: it is absolutely tax-free. You die, pass it down to
• 11:05
  Suze: your beneficiaries, and they take it out absolutely tax-free. So,
• 11:11
  Suze: I think if you don't understand them, my favorite podcast
• 11:16
  Suze: that I have ever done,
• 11:18
  Suze: as to why I want you to have a Roth
• 11:21
  Suze: regardless of how much income you have, is Don't be
• 11:25
  Suze: Partners With Uncle Sam. April 21st, 2024. Listen to that
• 11:31
  Suze: podcast over and over again, and if you still decide
• 11:35
  Suze: that you don't wanna do a Roth, I don't know
• 11:38
  Suze: what to tell you. I just don't. All right, go on.
• 11:41
  KT: The next question is from Sharon, Suze. She said, Hi, Suze.
• 11:45
  KT: Regarding the divorced two-year requirement to file a claim on
• 11:50
  KT: your ex-spouse if I've been married twice.
• 11:54
  KT: You know, she's, she's wondering like what to do. She
• 11:57
  KT: said both lasted 10 years and divorced twice.
• 12:04
  KT: Am I able to collect divorced spouse benefits from ex-spouse
• 12:08
  KT: one if I've been divorced from ex-spouse one for more
• 12:12
  KT: than two years, even if I...
• 12:17
  KT: This makes me laugh about uh one and two even
• 12:20
  KT: if I have only been single for one year after
• 12:22
  KT: divorcing ex-spouse two, so that's what she's asking are the
• 12:28
  KT: requirements to file a claim?
• 12:30
  Suze: So first of all, everybody, there's spousal requirements and then
• 12:36
  Suze: there's survivor requirements, which means your spouse has died. So
• 12:41
  Suze: she's asking about spousal requirements.
• 12:45
  Suze: To collect on your ex-spouse's Social Security, you have to
• 12:50
  Suze: be 62 years of age or older. That's number one.
• 12:54
  Suze: Number two, you have to have been married for 10 years,
• 12:57
  Suze: divorced for two years, which she may be, I don't know,
• 13:01
  Suze: she doesn't say her age, but let's say she's 62
• 13:04
  Suze: or older. She meets the qualification for getting ex-spouse's number
• 13:09
  Suze: one's Social Security, some of it, all right.
• 13:13
  Suze: However, ex-spouse number two, even though she's only been divorced
• 13:17
  Suze: one year, doesn't disqualify her from claiming on spouse one.
• 13:22
  Suze: So the answer to the question is, oh, you can
• 13:25
  Suze: claim as long as you're 62 years of age or older,
• 13:28
  Suze: and you have not remarried. Yes, you can claim on
• 13:33
  Suze: spouse one, ex-spouse one.
• 13:35
  KT: So I have a question. What if ex-spouse two, has
• 13:40
  KT: greater benefits than one? Can you switch?
• 13:44
  Suze: After she has been divorced from ex-spouse two for two years?
• 13:49
  Suze: If she wants, she can switch if it's higher.
• 13:52
  Suze: Than ex-spouse one, believe it or not, as long as
• 13:56
  Suze: she's 62 years of age or older and she has
• 14:00
  Suze: not remarried, very different KT than if the ex-spouse even
• 14:06
  Suze: had died, then she could go from spousal benefits to
• 14:11
  Suze: survivor benefits and then claim, right, survivor benefits even if
• 14:18
  Suze: she gets remarried at 60or older.
• 14:20
  KT: And you can keep that even if you're remarried you
• 14:25
  KT: can keep survivor benefits survive from your...
• 14:28
  Suze: Yes it once the ex-spouse, once she's been divorced, if
• 14:33
  Suze: the divorced spouse dies now she has the ability to
• 14:37
  Suze: switch to survivor benefits, let's say, but if she was
• 14:41
  Suze: full retirement age.
• 14:44
  Suze: She could then get full retirement benefits from her ex-spouse,
• 14:51
  Suze: but now they're ex-survivor benefits.
• 14:54
  KT: Amazing.
• 14:55
  Suze: Amazing. And for the spousal benefits, just so you know,
• 14:59
  Suze: they don't have to have claimed yet for her to
• 15:02
  Suze: get those.
• 15:03
  KT: Huh.
• 15:05
  Suze: Huh, what was that, huh?
• 15:06
  KT: Well, that's like that's interesting. I, I mean, who knew?
• 15:11
  Suze: I did.
• 15:12
  KT: I didn't know that. I thought a lot of people
• 15:14
  KT: listening that are divorced didn't know that, that's like a surprise.
• 15:19
  Suze: You would only get the hire of your own benefit
• 15:24
  Suze: or your ex-spouse number one in this case benefit or
• 15:28
  Suze: your ex-spouse two benefit. You get the higher of them.
• 15:33
  Suze: If in fact you've met the qualification, so she just
• 15:37
  Suze: has to wait another year and she could switch to
• 15:39
  Suze: ex-spouse two if it's higher or the spousal benefit. Go on.
• 15:43
  KT: All right, keep track of those benefits, everybody.
• 15:47
  Suze: But you gotta be married 10 years.
• 15:50
  KT: All right, this is from Deborah. She said, Hi, Suze
• 15:53
  KT: and KT. Thank you both for providing such important education
• 15:57
  KT: for the women of America.
• 15:58
  Suze: But wait, I wanna go back for a second.
• 16:02
  Suze: Which is why it's so seriously important for gay couples,
• 16:06
  Suze: honest to God, to be able to be legally married.
• 16:10
  KT: Oh yeah, we forget about that.
• 16:12
  Suze: Right, because the spousal benefits and the divorce benefits, all
• 16:15
  Suze: of those really, really matter.
• 16:19
  Suze: So hopefully that benefit will never ever go away. And
• 16:23
  Suze: if you're out there and you have not yet taken
• 16:26
  Suze: advantage of being married and you've been living together, you
• 16:30
  Suze: love one another, and you keep saying to yourself, oh,
• 16:33
  Suze: what difference does it make if I get married or not?
• 16:36
  Suze: It makes a big difference, everybody, so
• 16:39
  Suze: don't take it for granted. All right, go on.
• 16:42
  KT: Yeah, you're depriving yourself of benefits.
• 16:45
  Suze: Yeah, of possible potential benefits in many, many ways. Go on.
• 16:48
  KT: All right, next is from Deborah. Thank you both for
• 16:51
  KT: providing such important education for the women of America as well,
• 16:56
  KT: of course, for those smart enough to listen.
• 16:59
  KT: You mentioned in the first Suze school of the year
• 17:02
  KT: that the Roth contributions for 2025 tax calculations can be
• 17:08
  KT: made as late as April 15, 2026, correct, right? If
• 17:14
  KT: I want to contribute before April 15th for my
• 17:19
  KT: 2026 tax calculations. Do I need to do anything special
• 17:24
  KT: to tag these contributions to alert the IRS, or will
• 17:29
  KT: it all just come out in the wash over time?
• 17:32
  Suze: No, because really if you haven't made your contribution for
• 17:35
  Suze: 2025 yet and you want to and you wanna make
• 17:40
  Suze: a 2026 contribution as well, the same day, January 1st
• 17:46
  Suze: of this year, let's say you wanted to do both
• 17:48
  Suze: the same day. You have to tag what year it
• 17:51
  Suze: is for, and it doesn't all come out in the
• 17:54
  Suze: wash because again you have to meet the five-year rule.
• 17:57
  Suze: And if this is your first time opening up a
• 18:00
  Suze: Roth IRA, you have to let them know. So you just,
• 18:04
  Suze: when you open it up, you let them know it's,
• 18:07
  Suze: they ask you and you just tell them, all right.
• 21:42
  KT: All right. Next is from Mary. She said, I asked
• 21:45
  KT: my employer about allowing post-tax contributions up to the 415C limit.
• 21:52
  KT: Their response was the last time they reviewed it, they
• 21:55
  KT: did not think they would pass the nondiscrimination testing. Can
• 22:00
  KT: you explain that response and is it reasonable?
• 22:04
  Suze: It is reasonable, KT, and the reason is this.
• 22:08
  Suze: All corporations have to meet certain qualifications, which really, to
• 22:14
  Suze: put it simply without me getting complicated, which means that
• 22:18
  Suze: your highly compensated employees, known as HCEs, believe it or not,
• 22:25
  Suze: do not have more of an advantage than your non-highly
• 22:31
  Suze: compensated employees known as your NHCEs and therefore, if your
• 22:39
  Suze: lower wage employees are not fully contributing to the employer plan,
• 22:45
  Suze: the 401k or the 403B.
• 22:48
  Suze: Then the highly compensated employees cannot put in more than
• 22:54
  Suze: what everybody is allowed to put in, so that would
• 22:58
  Suze: be whatever the maximum happens to be, but above that
• 23:02
  Suze: they won't allow after tax contributions. Yes, it's reasonable so
• 23:08
  Suze: that it's possible that when you go to speak to
• 23:11
  Suze: your employer if they allow after tax contributions, they may
• 23:15
  Suze: say no because it may
• 23:17
  Suze: provide discrimination against the lower paid employees, believe it or not.
• 23:24
  Suze: That's a simple explanation of it, but that is the rule.
• 23:27
  Suze: All right.
• 23:28
  KT: OK, Suze, next question.
• 23:30
  Suze: Should this be your quizzie?
• 23:32
  KT: No quizzes in 2026.
• 23:35
  KT: Everybody loves when you do a quizzie.
• 23:37
  KT: No more quizzes.
• 23:38
  Suze: And why is that?
• 23:39
  KT: Because I'm busy studying Roth, so no quizzies. I'm busy
• 23:43
  KT: studying my...
• 23:45
  Suze: You are afraid to be wrong. Admit it to everybody.
• 23:48
  KT: Yeah, I'm afraid I don't like to be wrong. It's
• 23:50
  KT: I'm not afraid. I don't like it when I'm wrong.
• 23:53
  Suze: That's why we do the quizzies.
• 23:55
  KT: No more quizzies, everybody. They're gone.
• 23:57
  Suze: I am going to give her a quizzie whether she
• 23:58
  Suze: knows it or not.
• 23:59
  KT: So from Nancy, Nancy, Nancy said, I am 59 years
• 24:04
  KT: old and had to stop working to be a caretaker
• 24:07
  KT: for my elderly mother, so I did not have any
• 24:11
  KT: W-2 income in 2025.
• 24:14
  KT: My husband has a 401k at his job, but he
• 24:17
  KT: does not have a Roth. Can he fund my Roth
• 24:22
  KT: IRA while I'm unemployed?
• 24:25
  Suze: Pop quizzie?
• 24:26
  KT: No.
• 24:27
  Suze: Seriously?
• 24:28
  KT: Yeah, he can't fund it.
• 24:30
  Suze: Are you positive?
• 24:30
  KT: Yeah.
• 24:33
  Suze: (Suze makes the wrong answer sound)
• 24:34
  KT: Oh come on, don't, don't do that to me. I
• 24:36
  KT: thought all retirement accounts, especially the Roth, have to be
• 24:40
  KT: funded with earned income.
• 24:42
  Suze: All right, ready to learn something new.
• 24:45
  KT: It's her husband's earned income?
• 24:47
  Suze: Yea.
• 24:47
  KT: And it's allowed. OK, so you, you have to fund
• 24:51
  KT: all mine.
• 24:54
  Suze: KT anyway, here's the thing.
• 24:57
  Suze: There's something known as a non-working spousal retirement account, and
• 25:04
  Suze: your spouse cannot only fund their own 401k or a
• 25:10
  Suze: Roth 401k if they have one, their own Roth IRA
• 25:15
  Suze: and if they make too much money, their own Roth
• 25:17
  Suze: backdoor Roth IRA if they don't have a traditional IRA
• 25:21
  Suze: and they can fund
• 25:23
  Suze: the non-working spouse's retirement account. Now, officially it's not named
• 25:30
  Suze: a non-working spousal, and yes, your spouse can fund it
• 25:34
  Suze: not only for themselves but for the spouse as well.
• 25:37
  KT: Suze, my final question is from Lynn, and it's a
• 25:40
  KT: Roth question. I'm, I'm, I'm learning about you, but don't
• 25:45
  KT: ask me to answer it. Don't ask me to answer it.
• 25:47
  Suze: But I know why you chose it.
• 25:50
  KT: Because of Lynn, all right, my sister, my twin sister's name. Hi,
• 25:54
  KT: Suze and KT, I'm 65 years old and still working
• 25:59
  KT: because I love my job. I love my job too.
• 26:02
  Suze: You don't have a job go on.
• 26:05
  KT: I'm contributing to a Roth 401k so I can leave
• 26:08
  KT: it to my children one day. Unfortunately, most of my
• 26:12
  KT: retirement savings are in traditional IRAs and 401ks. My goal
• 26:18
  KT: is to continue contributing to the company Roth 401k and
• 26:22
  KT: Roth 457B to the max until I scale back when
• 26:27
  KT: I turned 70 or so. What are the rules about
• 26:31
  KT: inheriting Roth 401k
• 26:34
  KT: to non-spousal beneficiaries? I find it hard to get a
• 26:38
  KT: clear answer, as the sites always say they have to
• 26:42
  KT: take it in 10 years, and it may affect their
• 26:45
  KT: tax bracket. Is this true for Roth 401k inheritances?
• 26:50
  Suze: So here's the scoop.
• 26:52
  Suze: Yes, it's true partially. Whether it is a Roth KT,
• 26:59
  Suze: or a traditional retirement account, whether it's an IRA doesn't
• 27:04
  Suze: matter if it's not left to a spouse or an
• 27:09
  Suze: eligible designated beneficiary, which I've explained many times, but normally
• 27:14
  Suze: if it's a child to the kids and they're more
• 27:17
  Suze: than 10 years older or younger than you, which I'm
• 27:20
  Suze: sure they are, for the beneficiary.
• 27:22
  Suze: All right, they have to wipe the account clean within
• 27:27
  Suze: 10 years. The difference between a traditional retirement account, they
• 27:33
  Suze: should start wiping it clean yearly because otherwise in the
• 27:36
  Suze: 10th year they're gonna have to wipe it all out,
• 27:40
  Suze: and if they've never touched it, it could be a
• 27:42
  Suze: serious tax hit for them because it will be taxed
• 27:45
  Suze: to them as ordinary income. In a Roth, however,
• 27:50
  Suze: I wouldn't touch it if I didn't have to and
• 27:52
  Suze: let it grow for all those 10 years and in
• 27:56
  Suze: the 10th year then wipe it clean but it's now
• 28:00
  Suze: tax free to them just that simple. Whoever said
• 28:07
  Suze: that it's gonna be taxable. They're just saying that because
• 28:11
  Suze: they wanna be careful. Did you meet the five year rule?
• 28:14
  Suze: Did you not yet? Whether it's a Roth 401k or
• 28:18
  Suze: a Roth IRA, it still has to meet the five
• 28:21
  Suze: year rule. However, you die, it's met the five year rule.
• 28:27
  Suze: They have 10 years to wipe it clean, and it
• 28:29
  Suze: will be 100% tax free to them. All right.
• 28:35
  Suze: What do you want to say?
• 28:37
  KT: When you have that 10 years, you can take any
• 28:40
  KT: amount in any year as long as it's wiped clean
• 28:43
  KT: within 10 years.
• 28:43
  Suze: That's right. ding ding ding ding ding ding ding ding
• 28:46
  Suze: ding ding ding ding ding.
• 28:49
  KT: I'm learning. I'm learning. You're never too late to learn, everybody.
• 28:52
  Suze: So what are we gonna do today?
• 28:54
  KT: Today is our I'm excited we have an appointment this
• 29:00
  KT: afternoon with our web developers. We have a new website
• 29:05
  KT: being launched at any moment and I have to make
• 29:09
  KT: approvals on everything.
• 29:11
  KT: I'm excited. It's, it works great on your phone. It's simple.
• 29:15
  KT: It's easy to get updated information, and we've been developing
• 29:19
  KT: this now for quite a long time now.
• 29:22
  Suze: When she says we...
• 29:23
  KT: The team.
• 29:24
  Suze: Not me.
• 29:26
  KT: No, I do that. That's my job job.
• 29:28
  Suze: For some reason, everybody, I just, I don't take an
• 29:31
  Suze: interest in graphics and data. That's KT's forte, so I
• 29:36
  Suze: stay out of it.
• 29:38
  Suze: Right. And so until Sunday.
• 29:40
  KT: What are you gonna do Sunday? What are you gonna
• 29:42
  KT: talk about?
• 29:43
  Suze: I may talk about the market again, but what a
• 29:48
  Suze: K market is, a U-shaped market, a V shape, I'm
• 29:51
  Suze: gonna talk to them, I think, about the alphabet letters
• 29:55
  Suze: of the stock market. What do you think of that?
• 29:59
  KT: Like the I's?
• 30:00
  Suze: No, the K's,
• 30:04
  KT: What about the KTs?
• 30:06
  Suze: KTs always in the market if you ask me. Anyway, everybody...
• 30:10
  KT: Have a great, great, great week ahead. See you Sunday.
• 30:14
  KT: There's only one thing we want you to remember, everybody,
• 30:17
  KT: and it's this:
• 30:18
  Suze: People first.
• 30:19
  KT: Then money.
• 30:20
  Suze: Then things. Now you stay safe. Bye-bye, everybody.