Podcast Summary:

Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Episode: How Not To Pay Taxes On An Inherited Retirement Account
Date: December 11, 2025
Host: Suze Orman (with regular co-host KT)

Main Theme

This episode features the “Ask KT & Suze Anything” segment, where Suze Orman and KT answer listeners’ personal finance questions. The central discussion revolves around handling inherited retirement accounts—specifically the impossibility of avoiding taxes on traditional inherited accounts—and addresses a variety of listener questions about life insurance schemes, Roth accounts, car purchases in retirement, Medicare enrollment, trust beneficiaries, and sensitive family inheritance issues.

Key Discussion Points & Insights

1. Borrowing Against Life Insurance and Stocks

• Listener Question: Can you get a life insurance policy or put stocks into a trust and borrow against them for better financial leverage?
• Suze’s Take:
  • Not a scam, but “just stupid” (01:38).
  • Borrowing against your own money means paying interest to use your assets (01:54).
  • With margin accounts, borrowing means paying interest and risking margin calls, which can result in selling off your stocks in a downturn (02:49).
  • “Are you kidding me? It just makes no sense whatsoever.” (01:56, Suze)

2. Inherited Retirement Accounts and Avoiding Taxes

• Listener Question: Elderly father inherited a large 403(b) from deceased daughter—can taxes be avoided?
• Suze’s Take:
  • “There is absolutely no way to avoid taxes on it.” (04:30)
  • Only way to avoid income taxes is by using Roth accounts, which must have been set up before the inheritance (04:30).
  • Withdrawals must occur over time—likely within 10 years, not all at once—so taxation is inevitable but can be managed (06:20).
  • Focus on how to take the money out, not how to avoid taxes.

3. Roth IRAs and Conversions for Seniors

• Listener Question: 84-year-old with $100,000 in savings/CDs—is it worth converting to a Roth?
• Suze’s Take:
  • Only possible to convert money in a traditional retirement account to a Roth (07:26).
  • Cannot convert regular savings/CDs to a Roth unless you have earned income—it would be a new contribution, not a conversion.
  • “No, it does not make sense for you to do that. And, in fact, you cannot.” (07:26, Suze)

4. Choosing IRA Investment Risk

• Listener Question: Should a Roth IRA be low-risk or aggressive?
• Suze’s Take:
  • Depends on age, needs, job security, and emotional tolerance for loss (09:01).
  • If young and uncertain, dollar-cost averaging in an S&P 500 index fund ETF is a good, simple option (10:24).

5. Expensive Car Purchases in Retirement—Money or Value Conflict?

• Listener Scenario: Spouse wants a $90,000 car; partner feels it’s excessive despite having the funds.
• Suze’s Framework:
  • Men often hit milestones ("dollar of the decades") and want to indulge, but it's often unwise (12:11).
  • Full cost is much more than purchase price: insurance, maintenance, depreciation, registration, and opportunity cost could total $175,000 in five years (13:27–15:55).
  • Both partners should agree on major purchases; “I always go with the one that doesn’t want to do something.” (13:27)
  • Suggests compromise: consider slightly used cars; calculate true long-term costs (16:58–18:13).
  • “A car is such an extortion. It is not an investment; it’s simply a show-off toy for others if you ask me.” (19:07, Suze)

6. Designating Beneficiaries: Trusts vs. Individuals

• Listener Question: Should a single person name a trust or specific individual for employer retirement account beneficiary?
• Suze’s Guidance:
  • Unless your trust is a “see-through trust,” default to naming the actual person you wish to receive the funds (20:20).
  • For trusts, only use as contingent beneficiary if married and trust is compliant.

7. Medicare Enrollment While Still Working

• Listener Question: Should someone turning 65 with employer benefits enroll in Medicare?
• Suze’s Guidance:
  • If employer has 20+ employees, delay Medicare Part B & D; employer plan remains primary (22:16).
  • If employer has <20 employees, must enroll in Medicare A & B as Medicare becomes primary (22:42).
  • If contributing to an HSA, delay Medicare A to keep contributing (23:36).
  • Always be careful with Medicare Advantage plans (24:36).
  • "Call your HR department and ask them the size of your employer." (22:18, Suze)

8. Using 401(k) to Pay Off Living Expenses or Debt

• Listener Scenario: 60-year-old considering taking money from 401(k) to pay off apartment/HOA fees due to difficulty selling.
• Suze’s Advice:
  • Don’t touch the 401(k)—consider reducing the sale price by the amount you’d lose to taxes if you withdrew from your 401(k) (27:56).
  • Withdrawing creates unnecessary tax hit and jeopardizes retirement security.
  • “If you can’t sell it, it means it’s priced too high. Lower the price until somebody buys it. Period.” (28:13, Suze)

9. Sensitive Family Inheritance Questions

• Listener Scenario: Dad with $9M gave brother $900k from IRA originally designated for both; listener feels slighted.
• Suze’s Guidance:
  • Always stand in your truth and communicate one-on-one—not in an accusatory way, but to understand motivations and decisions (30:49-31:40).
  • “It’s your business because it’s bothering you. When you hold something in, it’s going to eat at you.” (31:52)
  • Approach with understanding—“You have absolutely nothing to lose and everything to gain.” (32:44)

Notable Quotes & Memorable Moments

• On Borrowing Against Money:

  • “It's not a scam, Susan. It's absolutely just stupid.” – Suze (01:38)
  • “When you see the word ‘borrow,’ just think about what that means.” – Suze (03:21)

• Inherited Retirement Accounts:

  • “There is absolutely no way to avoid taxes on it.” – Suze (04:30)
  • “Stop worrying about the taxes. There is no way around them.” – Suze (05:50)

• Car Purchases:

  • “It's the dollar of the decades... they want to buy a boy toy.” – Suze (12:11)
  • “Never look at just what something costs to buy; you have to look at what does it cost you to keep.” – Suze (16:33)
  • "It is not an investment; it’s simply a show-off toy for others if you ask me." – Suze (19:07)

• Medicare Enrollment:

  • “If your employer has 20 or more employees, then your employer plan has to remain as primary, and you do not need Medicare B or D at 65.” – Suze (22:16)
  • “If she has an HSA ... and she enrolls in part A, she won't be able to have a health savings account.” – Suze (23:36)

• Facing Family Conflicts Over Inheritance:

  • “Approach your father, not in an accusing way, but speak directly from your heart and with respect.” – Suze (32:50)
  • “You have absolutely nothing to lose, and everything to gain.” – Suze (32:54)

Timestamps for Important Segments

• 01:12 – Borrowing against life insurance and stocks
• 04:30 – No way to avoid taxes on inherited retirement accounts (main theme)
• 07:26 – Roth conversion for seniors with savings/CDs
• 09:01 – IRA investment risk: low vs. high
• 12:11–19:40 – The $90K car debate: cost, values, and marital agreement
• 20:20 – Naming trust vs. person as retirement account beneficiary
• 22:16 – Medicare enrollment rules for those still working at 65
• 27:56–28:13 – Using 401(k) to pay off real estate—don’t do it!
• 29:27–33:24 – Inheritance, family communications, and standing in your truth

Tone and Style

Suze’s hallmark directness, paired with KT’s supportive and sometimes playful interjections, creates a warm, honest, and sometimes humorous tone. Suze is blunt (“it’s just stupid”), practical (“lower the price until it sells”), and consistent in emphasizing long-term, values-based financial decisions. Both are passionate about listeners’ financial education and security over financial shortcuts or family drama.

For Those Who Haven't Listened

This episode offers actionable advice on inherited retirement accounts and other complex personal finance scenarios. Suze reinforces that there is no magic trick to avoid taxes on inherited traditional accounts; the only way is with Roth structures set up beforehand. She touches on emotional money decisions, family conversations about inheritance, and critical details behind Medicare and beneficiary choices. Perfect for anyone facing retirement decisions, family inheritances, or just striving to make smarter, more value-aligned financial choices.