NerdWallet’s Smart Money Podcast
Episode: "Tax Season Scams and Identity Theft Red Flags, Plus a 401(k) and IRA Rollover Lightning Round"
Release Date: January 26, 2026
Hosts: Sean Pyles, CFP® and Elizabeth Ayoola
Guest: Sam Taub, Investing Nerd

Episode Overview

This episode is a two-part guide tackling timely concerns around tax season scams and identity theft, as well as answering real questions about 401(k) and IRA rollovers. Hosts Sean and Elizabeth start with candid personal stories of getting scammed, and transition into actionable advice for scam prevention and response. In the second half, they team up with Investing Nerd Sam Taub for a rapid-fire Q&A covering the mechanics, pros, and pitfalls of managing multiple retirement accounts, consolidation, the "mega backdoor Roth," and IRA protection rules.

The show’s tone is friendly, non-judgmental, and practical—reassuring listeners that even money experts fall victim to scams and demystifying intimidating retirement account moves.

Part 1: Tax Season Scams & Identity Theft Red Flags

Personal Scam Stories & Why They're Important

• Elizabeth’s Gift Card Scam (03:32–05:40)

  • Elizabeth recounts being scammed over Christmas when she entered a Visa gift card number on a website that was barely misspelled (one letter off) from the real one.
  • “I felt embarrassed... I felt violated. It was so sad.” – Elizabeth (02:37)
  • Lesson: “This is such a classic move of scammers...if you’re not looking super closely or if your guard is down, you just put in your information and then they have access.” – Sean (04:33)
  • She reports the scam to the FTC and gets help from her boyfriend (the company works on reimbursement).
  • Pew Research: 73% of US adults have experienced some type of online scam. (05:53)

• Sean’s Credit Card Scare (06:30–08:35)

  • Sean describes receiving a legitimate push notification for a $2,400 fraudulent charge, reminding listeners to never follow links in texts or emails—always contact your bank directly.
  • “I went straight to the number on the back of the card. That’s your best source of information.” – Sean (07:19)
  • He resolved it in about 20 minutes and got a replacement card swiftly.
  • Elizabeth tip: Use credit card freeze features if you suspect fraud. (09:05)

Scam Prevention: Strategies & Mindsets

• Pausing & Adding Friction (09:55–10:53)

  • Elizabeth: “There’s so much power in a pause, because if you do it when you’re more attentive and your guard is up, you’re more likely to catch any things that are off.” (09:55)
  • Sean: “Online shopping is designed to be as seamless as possible...if you just insert more friction...that can stop you from spending money you don’t need to spend, and from going to a website that’s not what you think it is.” (10:23)

• Password Hygiene (10:53–12:45)

  • Discuss old-school password notebooks versus modern hassles.
  • “Honestly, using the same password for everything—even if it’s a complex one—is not the best idea.” – Elizabeth (11:08)

Tax Season Scams to Watch (12:45–16:54)

• IRS Imposter Calls & Government Scams

  • Fake “IRS agents” threaten penalties or tax arrest—don’t engage, just hang up.
  • “The IRS is not going to contact you that way. Pretty much no government agency is going to just call you up and ask for your most sensitive personal information.” – Sean (13:44)

• Smishing (SMS Phishing) & “Job” Text Scams

  • “Job” offers seem too good to be true (e.g., $100–200/hr for ‘simple work’).
  • Elizabeth: “Sometimes I reply and tell them they need to go get a job.” (13:59)
  • “The sad thing is, them texting you is their job.” – Sean (14:23)

• Urgency & Isolation Tactics, including “AI voice” Scams

  • Sean: “A theme I see across a lot of scams is urgency.”
  • Tactic: Scammer impersonates a loved one in distress (now sometimes using AI/voice cloning).
  • “Try to reduce the urgency and isolation you might feel.” – Sean (15:53)
  • Tip: Use a safe phrase with loved ones to verify emergencies.

What To Do if You’re Scammed

• Report the site/scam to the Federal Trade Commission (FTC).
• Contact any financial institutions directly via known phone numbers.
• “The most important thing is knowing what to do in case you are scammed.” – Elizabeth (16:37)

Part 2: 401(k) & IRA Rollover Lightning Round

With Sean, Elizabeth, and Investing Nerd Sam Taub (20:49–41:43)

Question 1: Should I consolidate multiple legacy 401(k)s? (21:00–24:45)

• What is a 401(k) rollover?

  • “A 401k rollover is the process of taking money out of an old 401k and putting it into a 401k at your current job or into an IRA.” – Sam (22:06)
  • Must complete within 60 days to avoid taxes.

• When should you consolidate?

  • Sam: Makes it easier to track accounts, especially since you can’t contribute to a former employer’s plan.
  • “Just consolidating everything together where you can track it easily...that’s a big advantage.” – Sam (23:35)
  • Sean: Do it before you lose track decades later.

• Comparing Target Date Fund Performance

  • Look at fees, whether the fund continues adjusting post-retirement, and convenience (links to NerdWallet resources mentioned).
  • Use mutual fund screeners for performance comparisons.

Question 2: “Mega Backdoor Roth” & After-Tax Conversions (25:42–32:37)

• Listener context: After-tax 401(k) matching and frequent (biweekly) conversions.

• What’s a Mega Backdoor Roth IRA?

  • “A technique where you make after-tax contributions to your 401k and roll over the after-tax balance into a Roth IRA or after-tax 401k.” – Sam (27:09)
  • Useful for high earners maxing out regular 401(k) limits. Not all employers offer this.

• Is frequent conversion worth the hassle?

  • “It does sound like a lot of work to me. But, yeah, tax-free growth is nice.” – Sam (28:32)
  • Needs careful attention to "pro rata" rules: You can’t just move after-tax money, and incorrect handling leads to extra taxes. – Sam & Sean (30:54–32:37)
  • Consult a tax professional before trying this.

Question 3: Consolidating and Managing Multiple IRAs (32:53–36:54)

• Listener has 3 Traditional IRAs (with different providers and management styles) and 1 Roth.

• Is consolidation better?

  • “Consolidating could boost returns a little if it reduces fees...But mainly I’d say that consolidating here would just be a quality-of-life improvement rather than something that’s going to increase gains.” – Sam (34:33)
  • Importance for beneficiaries and organization as you approach retirement.

• Should I use robo, manual, or human portfolio management?

  • Managed accounts relieve investors of rebalancing, but come with extra fees.
  • “I’m 100% a lazy investor, so personally I’m happy to pay a little more in fees now to not have to think about whether my investments are balanced ... but it really comes down to knowing your numbers.” – Sean (36:19)

Question 4: Are rollover IRAs as protected as a 401(k)? (37:00–41:01)

• Listener is worried about bankruptcy protection differences after moving a large 401(k) into an IRA.

• Key Points

  • “401k plans generally have unlimited protection from creditors in the event of bankruptcy...IRAs have limited protection at the federal level, up to a certain amount.” – Sam (39:03)
  • Money rolled over from a 401(k) into an IRA retains the 401(k)’s better bankruptcy protection—so for this type of risk, a rollover does not harm you.
  • Not all IRAs are the same; check both federal and state protections.

• Lesson: Track where your rollover money comes from—different rules may apply to funds from after-tax vs. pre-tax sources, and to protections.

Practical Tips & Notable Quotes

Scam Prevention and Response

• “Take a pause. There’s so much power in a pause.” – Elizabeth (09:55)
• “Always call the number on the back of your card, not a number from a text or email.” – Sean (07:19)
• “IRS is not going to contact you that way...” – Sean (13:44)
• “A theme I see across a lot of scams is urgency.” – Sean (15:53)
• “Use a safe phrase with loved ones” in emergencies. – Sean (16:05)
• Use password managers or an analog notebook, but keep it safe.
• If scammed, file a report with the FTC: https://reportfraud.ftc.gov/

Retirement Accounts: Rollover Wisdom

• “Consolidating everything together where you can track it easily... is a big advantage.” – Sam (23:35)
• “A major con of managed accounts is that they generally come with an extra fee.” – Sam (36:18)
• “Know your numbers...use a retirement calculator that lets you input the fees on your account.” – Sean (36:19)
• “Money that was rolled over from a 401k into an IRA is treated by bankruptcy courts like it’s still in the 401k.” – Sam (40:12)
• “A big part of effective money management is organization... having money all over the place creates a breeding ground for financial mistakes.” – Elizabeth (41:26)

Final Tips

• Not all employers offer “mega backdoor Roth” options—check your plan.
• Always consult a tax pro before making major moves that could ignite tax or legal issues.
• Consider the complexity, fees, and advantages of managed vs. self-directed accounts.

Key Timestamps

| Segment | Timestamps | Notes | |----------------------------|------------------|-----------------------------------------| | Personal scam stories | 03:32–08:35 | Elizabeth and Sean’s experiences | | Scam prevention tips | 09:46–16:54 | Pauses, passwords, specific scams | | 401(k) rollovers Q&A | 20:49–24:45 | Consolidation and process | | Target date funds tips | 24:45–25:42 | Comparing, fees, hands-off investing | | Mega Backdoor Roth | 25:42–32:37 | Process, pitfalls, tax rules | | IRA consolidation Q&A | 32:53–36:54 | Pros/cons of different management styles| | IRA protections Q&A | 37:00–41:01 | Bankruptcy rules, rollovers |

Resource Links

• Report scams: FTC Scam Report Portal
• NerdWallet’s Mutual Fund Calculator: nerdwallet.com
• NerdWallet’s roundup of best IRA accounts
• Episode show notes and additional guides via NerdWallet

Closing Advice

Even pros get scammed. Take a pause, add “friction” to online financial actions, maintain password hygiene, and check every link or phone number for accuracy. When managing retirement accounts, consolidate for your own sanity and to help those who may need to manage your accounts later. Investigate all options and consult experts for advanced maneuvers like mega backdoor Roths—a little diligence can keep your finances safe and growing.

“A big part of effective money management is organization... having money all over the place creates a breeding ground for financial mistakes.”
— Elizabeth Ayoola (41:26)