Reported about 13 hours ago
In a recent episode of her podcast, Suze Orman addressed a listener's complicated plan to roll over $1.6 million from a pretax 401(k) to a Roth IRA over ten years, cautioning that the strategy could lead to unexpected tax liabilities. The listener, Gina, intended to minimize immediate tax payments but Orman clarified that any conversion from a pretax to a Roth account incurs taxes at the time of conversion. She advised Gina to consider converting smaller amounts directly to the Roth IRA and pay taxes with savings instead, emphasizing the importance of understanding tax implications before executing such strategies.
Source: YAHOO