Suze Orman's Women & Money (And Everyone Smart Enough To Listen) Your Questions About Suze’s Roth Five Year Rule Masterclass
Sep 18, 2025
Listeners dive into the nuances of the Roth Five Year Rule with Suze, covering essential topics like when to convert and how to strategize for maximum benefit. There's insightful advice on naming beneficiaries and implications of RMDs on estates. Suze also emphasizes the importance of tax-sensitive conversion strategies and the advantages of backdoor Roth contributions. Tune in for practical tips that could transform your financial future!
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Don't Withhold Taxes From A Conversion
- Avoid converting if you must withhold taxes from the converted amount because you'll incur a 10% penalty if under 59½.
- Only convert when you can pay the conversion tax from non-retirement funds.
First Roth Starts The Five-Year Clock
- If you've had any Roth IRA open for over five years and you're over 59½, conversions are immediately withdrawable without the five-year restriction.
- You can convert repeatedly and access converted funds because your original Roth's clock applies.
Combine Contribution And Conversion Roths
- You can hold both contributory Roth and converted Roth funds in the same Roth IRA account.
- There's no operational need to open separate Roth accounts for contributions versus conversions.
