Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

Episode: "How To Avoid Tax Penalties on Roth Conversion"

Date: February 19, 2026
Host: Suze Orman (with KT Travis)
Duration: ~32 minutes

Episode Overview

This episode of Suze Orman’s “Women & Money” podcast, co-hosted by KT Travis, tackles a variety of listener questions centering around essential personal finance topics—most notably, how to avoid tax penalties on Roth conversions. Alongside that core theme, Suze and KT explore topics such as estate planning without an executor, mortgage risk when co-signing, the pitfalls of "all-in-one" home loans, best practices for IRAs and wills, 529 plan choices, and more. The show retains its signature mix of tough love, practical guidance, wit, and supportive energy.

Key Segments and Discussion Points

1. Warm-Up & Housekeeping

Timestamps: 00:00–03:41

• KT discusses past episodes, the pair’s YouTube debut, and the Lunar New Year (Year of the Horse).
• Suze briefly references the need for an emergency fund and Alliant Credit Union.
• Friendly banter about podcast hosting roles and their dynamic chemistry.

2. Support and Self-Belief

Timestamps: 03:42–05:04

• Listener “Karen” thanks Suze and KT, sharing that their advice has empowered her as a 67-year-old widow.
• Suze underscores the importance of self-belief and not letting anyone make you feel incapable about money.
• Quote:

  "There isn’t an excuse strong enough to keep you from being who you are meant to be."
  — Suze (04:38)

3. Estate Planning Without an Executor

Timestamps: 05:05–08:11

• Listener “Jermaine” asks how to finish estate documents without an executor (she’s divorced, no kids or close family).
• Suze’s advice:
  • Seek a great lawyer, especially during ongoing divorce.
  • If no personal connection, use a professional trustee (legal, banking).
  • Anyone trustworthy can serve as an executor or trustee—don’t get stuck!
• KT and Suze share their own succession trustee journey.

4. The Dangers of "All-In-One" (First Lien) Home Loans

Timestamps: 08:12–14:13

• Listener “Jordan & Nick” are considering refinancing with an “all-in-one” loan, hyped for faster home payoff.
• Suze’s take:
  • Mechanism: Functions as a HELOC; your deposits temporarily reduce the mortgage balance.
  • Works only for those with high income, big cash reserves, low spending, zero consumer debt, and strict discipline.
  • Major warning: Adjustable rates, risk of frozen credit lines (as in 2008), potential for money mismanagement.
  • Instead: Simply pay extra cash directly toward your mortgage principal—no gimmicks!
  • Quote:

    "It is not the loan that’s paying off the house, it’s your money. It’s the excess cash flow. What is wrong with all of you?"
    — Suze (12:11)

  • She urges listeners to be wary of mortgage brokers pushing these deals.

5. Smart Mortgage and Tax Advice

Timestamps: 14:14–15:39

• Closing thoughts: “No easy tickets” in finance.
• Quote:

  "If you owe your taxes, pay your taxes. Don’t do some gimmick... Stick to the rules, play by the game, and you will win. Gold medal."
  — Suze (14:15)

6. Wills vs. Beneficiaries on Retirement Accounts

Timestamps: 15:40–17:48

• Listener “Amanda” asks about leaving retirement funds in her will and how often to update her will.
• Suze’s advice:
  • Most of Amanda’s assets are in traditional pre-tax retirement accounts.
  • For IRAs: Use beneficiary forms—not the will—to direct funds.
  • For other assets or health/financial control, do “must-have docs” (living trust, advance directive, POA, etc.).
  • Emphasizes the importance of having correct estate documents regardless of amount or age.
  • Mentions the value of musthavedocs.com, and encourages updating documents as necessary.

7. The Risks of Being on Two Mortgages/Co-Signing

Timestamps: 18:01–21:36

• Listener: Wants to buy a place of her own but stay on her sister’s mortgage.
• Suze’s analysis:
  • If you’re on the mortgage, you’re fully liable for the debt.
  • Missed payments by your sister can wreck your credit.
  • Both mortgages count against your debt-to-income ratio, possibly blocking your own mortgage approval, or raising rates.
  • Considers “what if” scenarios (job loss, accident, etc.).
  • Bottom line: Don’t co-sign or stay on a mortgage if the other person can’t qualify alone—“Sometimes helping is hurting, and sometimes hurting is helping.”

8. How to Avoid Tax Penalties on Roth Conversion (Feature Topic)

Timestamps: 22:03–24:16

• Listener “Kristin” was penalized $164 for not withholding enough tax after a Roth conversion.
• Suze’s step-by-step solution:
  • You owe ordinary income taxes when converting traditional IRA to Roth IRA.
  • To avoid penalties:
    • Pay 100% of last year’s tax liability (or 110% if AGI was $150,000+) through withholding or estimated payments.
    • This “safe harbor” ensures no penalty, regardless of amount owed at tax time.
  • Quote:

    “If you want to avoid penalties… pay at least 100% of last year’s tax liability. Or 110% if your AGI was $150,000 or more.”
    — Suze (23:30)

9. 529 Plan Ownership—Individual vs. Custodial

Timestamps: 26:07–28:00

• Listener “Jason” wonders about the difference between individual and custodial 529 plans for his partner’s daughter.
• Suze's quick guide:
  • Never open a 529 as a custodial account (UGMA/UTMA); it’s treated as the child’s asset, which can hurt financial aid and gives them total control at 18.
  • Individual 529s (parent as owner) are preferable—retains parental control, better for financial aid calculations, and more flexibility to transfer to other beneficiaries.
  • Applauds Jason for already having a Roth for minors.

10. Notable Moments and Podcast Chemistry

Throughout, esp. at 01:16, 17:53, 24:30, 25:30

• Banter & Behind-the-Scenes:
  • Suze and KT joke about podcast hosting, YouTube appearances, and KT’s “wrap it up” hand signal.
  • Suze shares a personal anecdote about realizing as a child that “makeup is an economic plot against women,” leading to her lifelong aversion to makeup (31:01).
• Quotes:

  "Makeup is an economic plot against women."
  — Suze (31:13)

Timestamps for Key Segments

• Emergency Fund & YouTube News: 00:00–03:41
• Belief and Encouragement: 03:42–05:04
• Estate Planning without Executor: 05:05–08:11
• All-in-one Mortgage Dangers: 08:12–14:13
• Wills & IRA Beneficiaries: 15:40–17:48
• Mortgage Co-Signing Risks: 18:01–21:36
• Roth Conversion Tax Penalties: 22:03–24:16
• 529 Plan Ownership: 26:07–28:00
• Makeup Anecdote & Wrap-Up: 31:01–31:53

Notable Quotes

• "There isn’t an excuse strong enough to keep you from being who you are meant to be." — Suze (04:38)
• "It is not the loan that’s paying off the house, it’s your money. It’s the excess cash flow. What is wrong with all of you?" — Suze (12:11)
• "If you owe your taxes, pay your taxes. Don’t do some gimmick... Stick to the rules, play by the game, and you will win. Gold medal." — Suze (14:15)
• "Makeup is an economic plot against women." — Suze (31:13)
• “If you want to avoid penalties… pay at least 100% of last year’s tax liability. Or 110% if your AGI was $150,000 or more.” — Suze (23:30)
• "Sometimes helping is hurting, and sometimes hurting is helping." — Suze (21:33)

Tone and Takeaways

The episode mixes practical, actionable financial strategies with warmth, playful ribbing, and the “tough love” Suze is known for. Each answer is rooted in Sa fe, tried-and-true financial fundamentals—no gimmicks, no shortcuts. The pair’s chemistry and lighthearted exchanges provide accessibility without sacrificing depth.

Bottom line:

• Play by the financial rules—avoid shortcuts and dangerous products like all-in-one loans.
• Use beneficiary forms and trusts, not just wills, for estate planning.
• Avoid penalties on Roth conversions by meeting tax "safe harbor" rules.
• Don’t co-sign or stay on someone else’s mortgage unless fully aware of the risks.
• Choose individual 529 plans, not custodial ones, for flexibility and financial aid advantages.
• Self-belief, knowledge, and a focus on fundamentals are crucial for financial security.

Closing Motto:
"People first, then money, then things." — Suze and KT (31:53)

For further learning & to ask questions, visit the Women & Money app and Suze’s YouTube channel.

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