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Your Questions About Suze’s Roth Five Year Rule Masterclass · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:07
  Suze: September 18, 2025. Welcome everybody to...
• 0:11
  KT: The Women and Money podcast, and everyone's smart enough to listen.
• 0:16
  Suze: Ding ding ding ding ding. Anyway, it is September 18th, right? KT?
• 0:22
  Suze: Is there anything special on today?
• 0:24
  KT: I don't know.
• 0:25
  Suze: I don't think so.
• 0:26
  KT: But it's a nice number. It's a lucky number. It
• 0:28
  KT: adds up to 9.
• 0:29
  Suze: Do you all know that 9?
• 0:32
  KT: Is Suze's lucky number KT's is 8.
• 0:35
  Suze: Yeah, but I want you to think about this. September
• 0:37
  Suze: is a 9, 18 is a 9, and 2025 is
• 0:43
  Suze: a 9.
• 0:45
  KT: Yeah.
• 0:46
  Suze: So this is a
• 0:46
  KT: ...triple 9 day.
• 0:48
  Suze: So everybody, it is a lucky, lucky day, especially for money,
• 0:55
  Suze: just so you know. OK, there you go. But this
• 0:59
  Suze: is also special because it is Ask KT and Suze Anything,
• 1:04
  Suze: and KT is in the studio, and I know that
• 1:06
  Suze: makes you all or the majority of you anyway, so,
• 1:09
  Suze: so happy.
• 1:11
  Suze: KT...
• 1:12
  KT: Wait, tell everyone how to send a question to KT
• 1:15
  KT: so that I can pick it up, pick it out.
• 1:17
  Suze: But we have so many, but anyway, send your question
• 1:21
  Suze: into Ask Suze podcast@gmail.com.
• 1:26
  Suze: And if KT likes it, it will be read on
• 1:29
  Suze: this podcast and answered, but don't be surprised if I
• 1:35
  Suze: answer you directly, OK.
• 1:39
  KT: Are we ready?
• 1:40
  Suze: No.
• 1:41
  KT: OK.
• 1:42
  Suze: I'm not quite ready yet because
• 1:45
  Suze: so many people wrote in and said how surprised they were,
• 1:50
  Suze: how quiet you were.
• 1:53
  Suze: On Sunday. They were so disappointed when they didn't hear
• 1:57
  Suze: you because you said you were going to be there
• 2:00
  Suze: and then you pop in at the very end.
• 2:02
  KT: Because I was, I was condemned to silence. No, Suze
• 2:08
  KT: said the only way I can do my Sunday school,
• 2:11
  KT: which is about Roth and it's complicated, is if you
• 2:14
  KT: don't interrupt me. So I did not interrupt her. I
• 2:18
  KT: was as still
• 2:18
  KT: as a mouse. However, following that, we got lots and
• 2:22
  KT: lots of emails with questions that you all have about
• 2:27
  KT: that masterclass.
• 2:28
  Suze: So we thought, why not complete it today and make
• 2:32
  Suze: sure that none of you are
• 2:34
  Suze: confused.
• 2:35
  KT: All right, I have some really great questions here, but
• 2:38
  KT: here we go. Are you ready?
• 2:40
  Suze: I'm always ready.
• 2:40
  KT: All right, dear KT and Suze, thanks for the most
• 2:44
  KT: recent
• 2:44
  KT: Suze School on the five year rule of Roth. I
• 2:48
  KT: want to convert from a traditional IRA to a Roth.
• 2:52
  KT: I know I will pay taxes, but the only way
• 2:55
  KT: I could accomplish this at this stage of my life
• 2:59
  KT: is to have my financial planner withhold the taxes from
• 3:04
  KT: the sale and transfer the remaining.
• 3:06
  Suze: So you can stop right there, right there you can
• 3:09
  Suze: stop right there.
• 3:10
  Suze: So who's the name of this person?
• 3:12
  KT: Julie.
• 3:13
  Suze: Julie, Julie, if that's the only way you can do it,
• 3:16
  Suze: and you know that's the only way you can do it,
• 3:19
  Suze: you don't have the money to convert. Don't do it.
• 3:22
  Suze: Don't do it. Don't do it. Next question, KT.
• 3:25
  KT: She's 52, just so you know.
• 3:25
  Suze: Don't do it, Julie. So for all of you, when
• 3:28
  Suze: you convert, you owe taxes on the money that you
• 3:31
  Suze: converted that year.
• 3:34
  Suze: If you don't have money outside of a retirement account
• 3:37
  Suze: to do so, don't do it because if they withhold
• 3:42
  Suze: the money for you to pay your taxes.
• 3:46
  Suze: There's going to be a 10% penalty on it because
• 3:50
  Suze: number one, you are not 59 and a half years of age. You're
• 3:54
  Suze: going to owe ordinary income tax on that money as well.
• 3:58
  Suze: It makes absolutely no sense whatsoever. All right, KT, go on.
• 4:03
  KT: OK, so next question is from Pam. She said, Dear
• 4:06
  KT: Suze and KT, after listening to last Sunday's Suze School,
• 4:10
  KT: I think I made a boo boo.
• 4:12
  KT: I have had a Roth for over 20 years. I'm 68, retired,
• 4:17
  KT: and decided it would work well to convert yearly for
• 4:21
  KT: the next five years, money from my traditional IRA into
• 4:26
  KT: a Roth. My boo boo was I opened a new
• 4:29
  KT: Roth instead of converting to the old. Now I realize
• 4:33
  KT: after the show I should have just converted into my
• 4:37
  KT: original Roth, which was well over five years old. My
• 4:40
  KT: question is,
• 4:42
  KT: can I now transfer the new Roth conversion into my
• 4:46
  KT: old Roth without causing any trouble?
• 4:49
  Suze: Pop quizzy.
• 4:50
  KT: Oh...
• 4:51
  Suze: You sat here the entire day on Sunday. You said...
• 4:56
  KT: Ok, yes.
• 4:58
  Suze: Yes, what?
• 4:58
  KT: Yes, you can.
• 5:00
  Suze: And does she need to?
• 5:03
  KT: No.
• 5:04
  Suze: Why?
• 5:06
  KT: Because the five year rule's passed. Way passed.
• 5:10
  Suze: And so?
• 5:14
  KT: That's not fair. Stop asking me. I answered it. I
• 5:18
  KT: said yes. So now you take over.
• 5:22
  KT: That's not fair. You take over.
• 5:24
  Suze: Oh, I see.
• 5:25
  KT: You keep asking me questions like I know all the answers.
• 5:28
  Suze: You said last Sunday all of you are my witness, right?
• 5:32
  Suze: But she sat there and she said, Now I know
• 5:35
  Suze: everything there is to know about Roths.
• 5:37
  KT: Most, mostly, mostly, but not all the spaces in between.
• 5:40
  Suze: All right, first of all, Pam.
• 5:44
  Suze: We'll tell all of you, if you happen to know Pam,
• 5:47
  Suze: that I actually answered her directly.
• 5:49
  KT: All right, so Pam, give us... tell us... write back in and
• 5:54
  KT: tell us the damn answer.
• 5:55
  Suze: So like I said, sometimes I answer and I felt
• 5:58
  Suze: so bad for her because she felt like she made
• 6:02
  Suze: a boo boo on the fact of the matter is
• 6:04
  Suze: she did not. KT, don't act...
• 6:07
  Suze: don't try to act smart now. Just don't do it.
• 6:10
  KT: I was right. I was right with my answer.
• 6:12
  Suze: KT, but you don't know why you were right. And
• 6:15
  Suze: when you don't know why you've done something, you are
• 6:17
  Suze: not right, you are a guesser, not somebody anyway, forget
• 6:21
  Suze: about it. No, listen to me, everybody, seriously. Your first
• 6:26
  Suze: Roth that you open,
• 6:28
  Suze: the date of that first Roth follows you everywhere. So
• 6:34
  Suze: in this particular case, truthfully, Pam, because you are older
• 6:41
  Suze: than 59 and a half and because you had a
• 6:46
  Suze: Roth IRA opened for more than five years, you can
• 6:50
  Suze: convert all you want, pay the taxes on it, and
• 6:54
  Suze: take that money out any time you want.
• 6:57
  Suze: Because you have literally done two things. You've had a
• 7:01
  Suze: Roth for five years, and you're over 59 and a half years of age,
• 7:06
  Suze: so it doesn't matter. Just pay the taxes and all
• 7:10
  Suze: of that money is available to you whatsoever. So the
• 7:15
  Suze: truth of the matter is,
• 7:17
  Suze: you don't really need to keep a five year time
• 7:21
  Suze: clock cause that clock has already run because of your
• 7:25
  Suze: first Roth IRA that you opened 20 years ago. You
• 7:29
  Suze: do not have to ever use that Roth IRA again.
• 7:33
  Suze: You can open one new Roth, one new Roth, one
• 7:37
  Suze: new Roth, all conversions, and they're all dated back to
• 7:40
  Suze: the first one, so you didn't make a mistake.
• 7:44
  Suze: It could be easier, however, now just for you to
• 7:48
  Suze: transfer because it's not a conversion anymore, you might want
• 7:51
  Suze: to transfer all these accounts that you have into just
• 7:55
  Suze: one Roth IRA.
• 7:58
  Suze: And it doesn't have to be the first one that
• 8:00
  Suze: you opened, but you just might want to even transfer
• 8:03
  Suze: that one and all the ones that you opened into
• 8:07
  Suze: one Roth IRA now.
• 8:11
  Suze: And guess what, it might be a whole lot easier
• 8:14
  Suze: for you. All right, KT.
• 8:15
  KT: This is the next question is, is the same category
• 8:19
  KT: ready for this? This is Rebecca, she said. Suze, on
• 8:23
  KT: the ultimate Roth five year rule masterclass, you mentioned there
• 8:27
  KT: are two different kinds of Roth accounts.
• 8:29
  KT: A converted Roth and the other being a contribution Roth.
• 8:33
  Suze: Contributory, yes.
• 8:34
  KT: Contributory. So the question is, can a contributory Roth and
• 8:39
  KT: a converted Roth be held in the same account?
• 8:43
  Suze: Absolutely without any problem. So a lot of you feel like,
• 8:47
  Suze: oh my God, I have a Roth IRA now I'm
• 8:50
  Suze: going to do a rollover from a 401k and I
• 8:53
  Suze: need a separate account for that. And no, everything can
• 8:56
  Suze: go into one account.
• 8:59
  Suze: Absolutely.
• 9:01
  KT: So this next question from Anne.
• 9:03
  KT: This is interesting, Suze, because I, I think this is
• 9:07
  KT: a great question because I don't have a clue if
• 9:09
  KT: there's a limit.
• 9:10
  Suze: That's very funny, everybody, KT doesn't have a clue.
• 9:13
  KT: If there's a limit, ready, everyone, listen, listen. When you do
• 9:17
  KT: a Roth conversion, are you allowed to put in more
• 9:21
  KT: than $8,000? Two people wrote to you, Suze, that they
• 9:25
  KT: put in $50,000 and $100,000 in one year.
• 9:30
  Suze: And you honest to God don't know the answer to that.
• 9:33
  Suze: I need you to think deeply for me.
• 9:38
  KT: I think you can put in any amount because you
• 9:41
  KT: pay
• 9:42
  KT: the taxes on it all.
• 9:44
  Suze: So why did you say you don't have a clue?
• 9:45
  KT: Well, it was interesting because for some reason there's all
• 9:48
  KT: these limits on many different things, but not on a Roth...
• 9:52
  Suze: No.
• 9:52
  KT: Not on the, not on a converted converted Roth.
• 9:56
  Suze: So contributory Roths are Roths everybody that you contribute to
• 10:00
  Suze: every year with after tax money, period. You're limited to
• 10:06
  Suze: the annual amount depending on your age.
• 10:09
  Suze: 7,000 if you're under 50, 8,000 if you're 50 or older.
• 10:13
  Suze: When you are converting, you can convert any amount of
• 10:17
  Suze: money that you want. Just know, whatever you convert, Oh,
• 10:22
  Suze: you are going to owe ordinary income taxes.
• 10:24
  KT: Pay taxes on it. So that's why she was confused.
• 10:27
  KT: So Anne, there...
• 10:28
  Suze: We don't know, you don't know why she was confused.
• 10:30
  KT: She was, because she said, Hey...
• 10:33
  Suze: KT stop it, go to the next question.
• 10:36
  KT: Ok, the next question is Scott. This is, I am
• 10:39
  KT: one of the men smart enough to listen, and I
• 10:41
  KT: really appreciate all the help you have given my wife
• 10:44
  KT: and me. Are the 5 year rules the same for
• 10:48
  KT: Roth 401k conversions as they are for the Roth IRA conversions?
• 10:55
  Suze: Here's the scoop, Scott. They are and they are not,
• 10:58
  Suze: and this is the reason why.
• 11:01
  Suze: You worked for a company for five years. You had
• 11:05
  Suze: their Roth 401k for all five years. You quit. You
• 11:09
  Suze: go to a new employer that has a Roth 401k,
• 11:13
  Suze: and you transfer from the old to the new.
• 11:16
  Suze: Your old time clock, the five years there comes with
• 11:21
  Suze: you to the new one, so your new employer's retirement
• 11:26
  Suze: account takes on the clock of your first one, just
• 11:31
  Suze: that simple, however, listen closely.
• 11:34
  Suze: When you go from a Roth 401k to a Roth IRA,
• 11:41
  Suze: the clock does not come with you. Even though you're
• 11:46
  Suze: transferring from a 401k that's a Roth to a Roth IRA.
• 11:51
  Suze: Both after tax, does not matter. The Roth IRA will
• 11:57
  Suze: replace the time clock of your Roth 401k, that is
• 12:02
  Suze: why you want to start a Roth IRA today. So
• 12:07
  Suze: that the time clock is running. So when you do
• 12:10
  Suze: finally go from a Roth 401k to a Roth IRA,
• 12:15
  Suze: you've taken on the time clock of the Roth IRA
• 12:18
  Suze: that has been opened. If there isn't one that's been opened,
• 12:23
  Suze: your 5 year time clock starts the day you transfer.
• 12:27
  Suze: One more thing, Scott, a Roth IRA you can take
• 12:31
  Suze: out your original contributions any time you want without taxes
• 12:36
  Suze: or penalties regardless of your age or how long the
• 12:38
  Suze: money has been in there.
• 12:40
  Suze: Your Roth 401k does not work like that, so there
• 12:45
  Suze: is another difference there, which is why truthfully, after the
• 12:49
  Suze: point of the match in a Roth 401k, you're far
• 12:53
  Suze: better off taking that money and having a Roth IRA.
• 12:56
  Suze: Once you've maxed out your Roth IRA, go back
• 12:59
  Suze: to your Roth 401k unless you can fully max out
• 13:03
  Suze: both at the same time. Go on, KT.
• 13:05
  KT: Yeah, this next question is um similar to that as well.
• 13:10
  KT: This is from Janet. She said after listening to your
• 13:13
  KT: very helpful podcast on Roth's one thing I'm not totally
• 13:18
  KT: clear on my husband, aged 73.
• 13:22
  KT: And I, age 68, each have a Roth IRA from
• 13:26
  KT: contributions from our working years that date back much more
• 13:31
  KT: than five years ago. In recent years we've been doing
• 13:34
  KT: Roth conversions into a new Roth account for each of
• 13:39
  KT: us held at different brokerage houses.
• 13:42
  KT: Does the five year rule still no longer apply if
• 13:46
  KT: our Roth conversions are in totally different accounts than our
• 13:52
  KT: original Roth accounts or...
• 13:54
  KT: Do you have to do the conversion into the original
• 13:58
  KT: to have the five year rule no longer apply once
• 14:02
  KT: you are over 59 and a half?
• 14:04
  Suze: So, I obviously did not do a very good job
• 14:07
  Suze: on the masterclass because a lot of you seem to
• 14:12
  Suze: be
• 14:12
  Suze: confused. First of all, my dear Janet, your husband is 73,
• 14:17
  Suze: you are 68. You've had a Roth IRA opened way
• 14:22
  Suze: long ago. The five year rule doesn't even apply to
• 14:25
  Suze: you on any level whatsoever, so you don't need to
• 14:29
  Suze: worry about it.
• 14:30
  Suze: They don't have to be different accounts. They can be
• 14:33
  Suze: different accounts. They can be the same accounts. You shouldn't
• 14:36
  Suze: even think about it because of your age, and you
• 14:39
  Suze: had a Roth more than five years ago. Just that simple.
• 14:44
  Suze: It doesn't matter. You can do anything you want and
• 14:48
  Suze: you're going to be fine.
• 14:50
  KT: OK, so the magic takeaway, Suze is 59 and a half.
• 14:53
  Suze: Yes.
• 14:54
  KT: All right.
• 14:54
  Suze: And five years. Yes, yeah, after that it just doesn't
• 14:58
  Suze: even matter.
• 15:00
  Suze: It's like the five year rule doesn't apply.
• 15:03
  KT: OK, good, it's gone.
• 15:05
  KT: This is from Lynn, she said, I just received your
• 15:09
  KT: Ultimate Retirement Guide for 50+. I'm really wishing I had
• 15:14
  KT: used it years ago. We always hear that.
• 15:17
  KT: Now I need your advice, possibly changing my traditional IRA beneficiary.
• 15:23
  KT: I am 71. My husband is 90. My traditional IRA
• 15:28
  KT: balance is approximately $780,000. My husband's is $335,000. Is it
• 15:38
  KT: prudent for me to designate him my 100% beneficiary?
• 15:44
  KT: I am seeing in your distribution table that if I
• 15:47
  KT: pass before him, the combined RMD would be 91,000 this year.
• 15:55
  KT: So there you go.
• 15:57
  Suze: You should see KT's face reading this.
• 15:59
  KT: Well, so he's 90 years old.
• 16:02
  Suze: He's 90. You are 71.
• 16:06
  Suze: And really you could very well pass before him. You
• 16:11
  Suze: never know what can happen in life. In my opinion,
• 16:15
  Suze: all of you are just too freaked out about these RMDs.
• 16:21
  Suze: Stop it, everybody. Your job in life is to make
• 16:25
  Suze: sure that your husband is taken care of in whatever
• 16:30
  Suze: way he needs, and there are different rules when you
• 16:34
  Suze: leave
• 16:35
  Suze: a retirement account to a spouse versus when you leave
• 16:39
  Suze: it to a non-spouse and therefore you want to make
• 16:44
  Suze: sure that he has access to that money he can
• 16:47
  Suze: do anything he wants with that money. So if it
• 16:50
  Suze: were me in this situation.
• 16:53
  Suze: I would absolutely leave it all to him. I would
• 16:57
  Suze: not think about the RMDs. The truth of the matter
• 17:01
  Suze: is he's probably going to need to take out that money,
• 17:05
  Suze: for a nurse, for somebody to take care of him,
• 17:08
  Suze: to maybe he goes into a skilled living facility or
• 17:11
  Suze: just an assisted living, he's going to need that money anyway.
• 17:15
  Suze: Leave it to him and don't worry about those stupid RMDs.
• 17:22
  KT: Next question, Suze, is from Steve, another smart man.
• 17:26
  KT: I'm Steve and I'm one of those people smart enough
• 17:29
  KT: to listen. I'm 60 and retired with a pension covering
• 17:34
  KT: current expenses. I have about 1.2 million in a traditional IRA.
• 17:41
  KT: And 300,000 in my Roth, both at the same institution.
• 17:46
  KT: I'm going to do some conversions from my traditional to
• 17:49
  KT: my Roth. My portfolio is about a 65/35 balance. Do
• 17:55
  KT: I keep the 65/35 balance on the conversions or convert
• 18:01
  KT: the 65 equities first so the future biggest growth happens
• 18:07
  KT: in my Roth? Steve.
• 18:11
  Suze: She's smiling again. How old is he?
• 18:13
  KT: 60. What's funny is that men's, you know how they
• 18:18
  KT: ask the question, 65/35.
• 18:22
  Suze: Well, no, it's 65 stocks, 35 bonds. Here's what I
• 18:26
  Suze: would tell you, Steve. Simple convert the equities first because
• 18:31
  Suze: they have a better chance of going far higher than
• 18:35
  Suze: bonds right now, even though that I do think bonds
• 18:38
  Suze: are going to continue to go up a little bit
• 18:40
  Suze: because interest rates are going to go down. So get
• 18:43
  Suze: the stocks out of there and into the Roth sooner
• 18:47
  Suze: than later.
• 18:49
  KT: Next question from Marie, and Marie has another RMD dilemma,
• 18:54
  KT: she said....
• 18:54
  Suze: What's an RMD KT?
• 18:56
  KT: Required Minimum Distribution, baby!
• 18:58
  Suze: Ding ding, ding, ding.
• 18:59
  KT: So she said, Suze, first thank you for all the
• 19:03
  KT: advice and knowledge you so freely give to those of
• 19:05
  KT: us that need it. I'm 72, so the dreaded RMDs
• 19:10
  KT: are on the horizon.
• 19:12
  KT: Can I use the money from my RMD to open
• 19:16
  KT: a Roth for my adult children? This would get the
• 19:19
  KT: Roth clock started for them. Thank you, Marie.
• 19:22
  Suze: So Marie, listen to me. In fact, everybody listen to me.
• 19:28
  Suze: I hope that's true, don't you, KT?
• 19:29
  KT: Yes, they better listen.
• 19:30
  Suze: When you take out a required minimum distribution, you obviously
• 19:36
  Suze: have to pay income tax on it.
• 19:40
  Suze: And just that simple. After you've paid income tax, you
• 19:43
  Suze: can do anything you want with that money. So if
• 19:48
  Suze: you want to take that money and use it to
• 19:51
  Suze: fund your adult children's Roth IRAs, OK, but you have
• 19:57
  Suze: to make sure that they have earned income because if
• 20:00
  Suze: they don't have earned income.
• 20:03
  Suze: You can't put any money into their Roth, and you
• 20:07
  Suze: can only put a maximum, let's just say they're under 50,
• 20:11
  Suze: a maximum of $7,000 a year each or
• 20:17
  Suze: whatever their earned income is, whichever is less. So if
• 20:22
  Suze: their earned income is only $3,500 a year, you can
• 20:26
  Suze: only put $3,500 a year into their Roth. So that's
• 20:32
  Suze: how it works, my dear Marie. OK, go on, KT.
• 20:35
  KT: So Suze, why do you think people are so afraid
• 20:37
  KT: of their RMDs?
• 20:39
  Suze: Because first of all, if they had listened to me
• 20:41
  Suze: years ago and you had done a Roth, everybody, you
• 20:45
  Suze: wouldn't have to take out RMDs. Even if you had
• 20:49
  Suze: a Roth 401k, you don't have to take out RMDs,
• 20:53
  Suze: and that's a new law. However, required minimum distribution means
• 20:59
  Suze: you have to take money out whether you need it
• 21:01
  Suze: or not and pay taxes on it.
• 21:04
  Suze: That money KT counts towards the taxation of Social Security
• 21:10
  Suze: and Medicare B premiums, so people don't want to have
• 21:14
  Suze: to take it out if they don't have to. Like
• 21:16
  Suze: we have to take it out and we don't need it,
• 21:19
  Suze: and it counts towards everything. However, that's why I'm just
• 21:24
  Suze: going to say it again. If you don't do a
• 21:27
  Suze: Roth retirement account on your own, an IRA.
• 21:31
  Suze: A Roth 401k TSP, you know, or 403B at work,
• 21:37
  Suze: you are making the biggest mistake in your life. Don't
• 21:40
  Suze: be stupid, everybody. OK, go on.
• 21:44
  Suze: And I say that KT, I just because everybody now
• 21:47
  Suze: writes and they say, why didn't I do this 20
• 21:50
  Suze: years ago? I never thought my contributions would add up
• 21:53
  Suze: to $1.2 million to $2 million and everything, of course
• 21:58
  Suze: you didn't, but I think it for you, so just
• 22:01
  Suze: listen to me, especially if you're younger out there. Go on.
• 22:05
  KT: This is from Katie. She said, I'm a new listener
• 22:08
  KT: to your program and I love it.
• 22:11
  KT: I'm finally understanding the Roth, I, I think she said,
• 22:16
  KT: but I have a question...
• 22:17
  Suze: Oh, you have something in common with KT. How nice. Go on.
• 22:20
  KT: But I have, that's not nice, but I have a
• 22:23
  KT: question after,
• 22:24
  Suze: It's true!
• 22:25
  KT: But I have a question after listening to your podcast
• 22:28
  KT: on Sunday. I opened a Roth IRA at a bank
• 22:32
  KT: several years ago with a one-time deposit.
• 22:36
  KT: I'm now over 59 and half, so I know I
• 22:39
  KT: can access the contribution penalty free if needed, which luckily
• 22:44
  KT: I doubt I need to do. My question is I'd
• 22:48
  KT: like to open another Roth at Vanguard and start contributing
• 22:52
  KT: on a regular basis.
• 22:54
  KT: Does my five year rule apply here for the new account,
• 22:59
  KT: or will the five year rule already be met?
• 23:02
  Suze: You've already met the five year rule.
• 23:04
  KT: So let's answer it. You're over 59 and a half.
• 23:08
  Suze: If you're over 59 and a half, everybody, and you
• 23:13
  Suze: have had a Roth IRA opened anywhere,
• 23:18
  Suze: for over five years, the five year rule no longer
• 23:22
  Suze: applies to you. However, Katie, get it, KT, when I
• 23:27
  Suze: said you have something in common because her name is
• 23:30
  Suze: Katie and you're KT.
• 23:31
  KT: It's not what you meant.
• 23:32
  Suze: It's what... ok, well.
• 23:33
  KT: So not what you meant...
• 23:35
  Suze: But you all know what I meant.
• 23:37
  KT: Uh huh.
• 23:38
  Suze: Is that, listen, you say that you opened up a
• 23:41
  Suze: Roth IRA at a bank several years ago with a
• 23:44
  Suze: one time deposit. If I were you, I would absolutely, if
• 23:49
  Suze: you're opening up a new Roth IRA at Vanguard, can
• 23:54
  Suze: you just transfer,
• 23:56
  Suze: your Roth IRA at the bank into Vanguard? I think
• 23:59
  Suze: you'll have a far better return on your money in
• 24:02
  Suze: the long run. All right, go on.
• 24:04
  KT: So one of the listeners sent three questions. Can I
• 24:07
  KT: ask all three, and we'll see if you can get
• 24:09
  KT: through them before we run out of time? So, does
• 24:12
  KT: it make sense for me to continue down the path
• 24:14
  KT: to max out on the traditional 401k, or should I
• 24:19
  KT: convert to a Roth 401k?
• 24:21
  Suze: Absolutely convert to a Roth. Do not be, you know
• 24:25
  Suze: what I said before, the S word. OK, go on.
• 24:27
  KT: Stupid.
• 24:30
  Suze: That's the first time I've ever heard her say that word.
• 24:32
  KT: If the Roth 401k is a recommendation, when converting, what
• 24:37
  KT: percentage should I try to convert per year?
• 24:40
  Suze: Whatever amount of money makes sense tax-wise, check with your
• 24:45
  Suze: CPA so that you don't go into a higher income
• 24:49
  Suze: tax bracket. Next.
• 24:50
  KT: All right, Suze, this is the last question from this listener,
• 24:54
  KT: and then this is a wrap. Can I continue to
• 24:57
  KT: contribute the $7,000 per year to my backdoor Roth IRA
• 25:02
  KT: if I have a Roth 401k?
• 25:05
  Suze: Pop quizzy.
• 25:08
  KT: Oh.
• 25:09
  KT: Yeah, you can.
• 25:11
  Suze: Why do you say "oh?"
• 25:12
  KT: I just, because every time I hear the word quizzy,
• 25:15
  KT: I'm like, Oh, KT, don't get it wrong, don't get
• 25:17
  KT: it wrong.
• 25:18
  Suze: Ding ding ding ding ding ding. KT, don't be so
• 25:21
  Suze: afraid of being wrong.
• 25:23
  KT: That is a wrap. You would.
• 25:25
  Suze: No.
• 25:25
  KT: I'm not afraid. I'm not afraid. I'm like, come on already.
• 25:31
  Suze: OK, no problem. All right, everybody, until Sunday with Suze
• 25:36
  Suze: School that I have no idea what it's going to be.
• 25:39
  KT: But it's going to be a whole lot easier than
• 25:42
  KT: last Sunday.
• 25:44
  Suze: I think that masterclass, even though it doesn't seem like
• 25:47
  Suze: it given so many questions that have come in, it's
• 25:50
  Suze: a great, great masterclass.
• 25:52
  KT: Maybe you should do real estate.
• 25:55
  Suze: On what?
• 25:56
  KT: On Sunday school.
• 25:57
  Suze: I'll think about it. All right, but until then there's
• 26:01
  Suze: only one thing that we want you to remember, and
• 26:03
  Suze: it's this:
• 26:04
  Suze: People first, then money, then things.
• 26:07
  Suze: Stay safe, stay healthy, stay secure, and we'll see you soon.
• 26:12
  Suze: Bye bye.