How To Avoid Tax Penalties on Roth Conversion

Summary

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

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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.

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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.

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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)

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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.

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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.

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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)

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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.

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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.”

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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)

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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.

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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)

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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

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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)

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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.

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

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

[End of Summary]

Transcript

[A]

Hi, everybody. Suzio here. Now, what is the goal of money? The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account. It is essential for your financial foundation. So all of you should be participating in the ultimate opportunity savings account at Alliant Credit Union. Go to myalliant.com to find out more. And be secure. February 19, 2026. Welcome, everybody, to the Women and Money podcast and everybody smart enough to listen. This is the Katie and Susie where you ask us anything you write into asksusypodcastmail.com send in your question and if KT chooses it, oh, we'll answer it on this podcast. So Ms. Travis, she's being silent. Want to know why? I'll tell you why. Because I hurt her feelings last Sunday because I asked Robert to ask the questions and not her.

[B]

Robert, I love you, but she should have asked me to do that job.

[A]

That's her job. She takes it very serious. But this was no way for us to video us.

[B]

We couldn't do it in the same little studio when we just. It didn't work. We don't have all those cameras.

[A]

But trust me, everybody, if we do

[B]

it again, I'm going somewhere, renting a big studio for me. Leave Susie in this little itty bitty studio and we're going to do it where I will ask the questions.

[A]

So.

[B]

But wasn't it great, everyone? Keith and Susie have a great energy.

[A]

Thank you.

[B]

Fabulous dynamic. I loved listening to them first. Then I watched it on YouTube and it was just equally great. I loved the whole thing. I think she should do it at least once a month. At least.

[A]

There we go. And by the way, I just have to say for all of you, if you want to see us, we did finally tape a YouTube. Go to YouTube.com Susie Orman and you can see both Mr. Fitzgerald and myself talking to one another. And you can also get a glimpse of Robert. All right, kt.

[B]

First I have an announcement. Susie, I want to wish all of my friends in Asia, especially in Hong Kong, a very, very lucky. It is the lunar New Year. It started on the 17th of February and it's the 19th today. And we want to wish everyone a very happy year of the horse. A lucky year.

[A]

What does that year mean?

[B]

There's many, many different attributes. They're gonna have to look it up. But it's a good sign. It's a good year.

[A]

What are you?

[B]

I'm the best. I'm a dragon, everybody.

[A]

And what am I. I'm a water

[B]

dragon, which is the single most powerful and probably the very best sign you would ever want to be born to.

[A]

And why is that?

[B]

Because a dragon's number one in the scheme of the Horosco. Water is a. There's elements, there's the fire dragon, the earth dragon, the water dragon and the metal dragon, I think. And the water dragon puts out the fire dragon and gives sustenance to all the other dragons.

[A]

You're my little dragon, I can tell you that. All right, sweetheart, what do you think?

[B]

My first email is a thank you. I like to open with thank you notes.

[A]

Notice everybody. I didn't ask what am I? Because I have no idea. Do you know what I am? I think you're a rabbit.

[B]

I think you're the year of the rabbit. For sure you're a rabbit.

[A]

Hippity hop, poppy. Rabbit, rabbit, rabbit. All right, go.

[B]

So Karen wrote, thank you Susie and KT for helping the masses of us out here. That makes me sad, Karen, as I continue. Why does that make you sad for helping the masses? It's like everybody needs help. I wish there weren't masses of people that need financial help, but they do. As I continue on as a 67 year old widow, you've helped me to discover that I can do this and live on your life work is so appreciated and Karen sent a big heart to Susie especially. So thanks, Karen for that note. Makes us feel good.

[A]

You know, it's really important, everybody to have belief in who you are and to have belief in what's possible and what you can really do and to not be buy the ticket that many people are trying to sell you, which is you need help. It's too complicated. You don't have what it takes. You weren't good in math. Bottom line, there isn't an excuse strong enough to keep you from being who you are meant to be. Kt.

[B]

That's true. Next one is from Jermaine and Jermaine said, susie, I purchased your must have documents in 2021 and I have not completed them because I don't have an executor. How do I set must have documents when I don't have an executor? I'm 54 years old. I don't have any children, I don't have any family. I'm in year five. Woo. Year five of a divorce case and I don't want my money to end up in his hands. Okay, Susie, but listen. The reason I picked this everyone in the subject line, she wrote lone wolf with A quick question. Oh, thank you, Jermaine. So, Susie, what should she do?

[A]

So, first of all, most likely, if I were you, and you probably already have one, if you are in five years of a divorce, I think that means that you each have a lawyer at this point in time, don't you think?

[B]

Kt I would assume that we don't know.

[A]

All right, so let's say you don't. The very first thing I would do if I were you, Jermaine, is I would get a really great lawyer, believe it or not, just to make sure that everything is the way it should be. Not necessarily with your trust in your will, but really with this divorce, because that has to settle and you need to know who has what and this before you can actually set up anything in terms of an executor. If you don't have any children, does that mean you don't have any best friends? You don't have any people that you trust? An aunt, a sister, a brother? Anybody can be your successor trustee. If you have a trust and, or your executor if you really, really don't have anyone, then you need a professional trustee. It can be a lawyer, it can be somebody at a bank, whatever it may be. But there's got to be somebody in your life that you love, you trust, and that you can name them to be the executor and or successor trustee. Because you need a trust as well. You just need to ask them if they want it. All right.

[B]

Okay. The next question is.

[A]

We had that problem.

[B]

What? What problem? She's looking at me not having exact. Oh, no, no, no. We had a different problem. We have so many family members and friends and lawyers and professionals that first sus. When we met each other, we made, I think it was our. Our office manager, our successor trustee. Then it turned into a family member. Then it turned into should we go? Because we became more and more complicated with our trust and our assets and our. Our life. And now we didn't want them to. We didn't want to worry them.

[A]

So it's always great if you have a complicated situation to have a professional trustee. Yeah. All right, go on.

[B]

Okay, this next one is from Jordan. Jordan has a home loan question, but this is how he's opening. He said, hi, KT and Susie. First, a huge thank you. I picked up a copy of the money book for the young, fabulous and broke 15 years ago. It completely changed the trajectory of my financial life. I am endlessly grateful. So, Jordan, you must. Fifteen years ago, and if you followed that Book. Wow, you must be doing great. He said, my husband and I bought a condo three years ago and have been anxiously waiting for interest rates to fall so that we could refinance a current rate of 6.75%. Our mortgage broker suggested something called an all in one loan. Wait a minute, Susie. I think sometimes referred to as a first lien mortgage. He said that he has some clients who have paid off their homes in four to 10 years by using this product. Now, Jordan said, I'm hesitant. Seems there could be some downsides, but significant upside if it works as advertised. The thought of paying off our mortgage in less than 10 years is very exciting. But here's the best part. Thank you, ladies. Jordan and Nick. Men smart enough to listen.

[A]

Now, why do you think I went?

[B]

I don't know, but I never heard of that.

[A]

Of course you never did. But anyway. Why do you think I did that? Because I don't want. Why would I do that?

[B]

Because you don't like it when you. When you do this. When she does sound effects, everyone, you have to get ready. Like, prepare yourself, brace yourself. When Susie does a sound effect like that, like, oh, no. Or like, really, that's when you know she's not.

[A]

That's not why I did it.

[B]

Oh, why'd you do it?

[A]

See, I'm gonna surprise you.

[B]

Why'd you do it?

[A]

Because as you know, I go through some of these emails and when I read this, I was so upset. I answered Jordan and Nick in great detail, but I left it there and I was hoping that you weren't going to read it or pick it because I don't want people to know about these mortgages because I hate these mortgages and I don't even want these types of things in people's heads. So now I'm going to have to tell everybody KT about something that I think is the biggest waste of time and money ever. So are you ready, everybody? Thanks to kt, I'm going to talk about this. All right, so first of all, what exactly is an all in one loan? Very simple. It's basically where you have this mortgage. It's like a home equity line of credit as well. And you deposit your paycheck directly into the mortgage account. Every dollar that's sitting in there reduces your principal immediately. You deposit 10 or 15 thousand dollars. Katie. It reduces 250,000 to, let's say 245,000, 250,000, whatever it may be. All right? And interest is then calculated on the lower balance. And then when you spend money the balance goes back up. So it usually functions like a revolving credit line, like I said, similar to a heloc. It sounds brilliant because it's true. Mathematically, it can reduce interest if used perfectly. So who are the idiots that use this? All right, there you go. If a household has very high income, they keep large cash balances. They have low spending relative to income. So you put in a check for $30,000 and your monthly expenses are $10,000. Then the 20,000 goes in to start to reduce it. Okay? They don't carry any consumer debt. They have really strong kt. They're really good with money. So then, like I said, the math will work. But here is the truth, everybody. 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? So listen, these loans are usually at an adjustable rate. They're probably higher than what they're paying on their mortgage right now. 6.75, whatever it may be. All right? But every time you swipe a debit card or whatever, you're borrowing against the value of your home. And I'm just telling you it makes no sense. Listen, boys and everybody, if you want to own your house outright in 10 years, don't do it this way. Just put that extra money directly towards your mortgage, period. Otherwise you can get yourself in trouble. Remember, your mortgage forces you to pay down your principal. This does not. And listen, if the lender freezes the line like they did in 2008, don't ever forget that or your property values drop. Uh huh. You could be in serious trouble. So pay it off like you normally would. If you have extra cash, just put it right in towards the principal of your mortgage. You don't need this gimmick to pay off a mortgage and would probably make me not want to use that mortgage broker at all. Okay, go on, Katie.

[B]

Wow. Who knew? I did not know all of that.

[A]

Yeah, they. They've been around for so long. When I was doing the Susie Orman show, I can't tell you how popular they were. Everybody wanted to do it. And then came the depression. House values dropped. 2007 froze. All credit lines were home equity lines of credit disappeared and people were screwed. Can I just say it that way?

[B]

All right, next question.

[A]

Wait, I have to say something else. Okay, listen, there's no easy ticket to ride here. There really isn't. Don't try to get around things. If you owe your taxes, pay your taxes, don't do some gimmick that will help you save money on taxes, that will get you to pay off your mortgage cheaper, whatever it may be. Just stick to the rules, play by the game, and you will win. Gold medal. Gold medal.

[B]

Oh, yeah. Touchdown and gold medal.

[A]

Oh, my God. Did your heart break when the skater, the male skater, lost the gold medal? He didn't even place, Elio. Oh, did that break your heart?

[B]

The quad? God, Elio. It broke my heart to see his mom, who doesn't even watch the game. She can't do it. She was a professional skater.

[A]

But also. So it broke our hearts. All right, go on.

[B]

But his father hugged him like it was right.

[A]

Of course his father hugged him. All right.

[B]

Okay. So, from Amanda. Hi, Susie and kt. You were talking about the must have docs on a recent podcast, and it made me think harder about setting up a will. I need to do it. I'm 42 years old. I have little liquid funds, but ready. I have about $400,000 in retirement accounts, primarily traditional.

[A]

So in making my will, mistake, mistake, mistake, mistake.

[B]

I know she'll tell you to do your Roth. All right, ready. In making my will, can I leave people funds from the retirement accounts? Also, how often should I be updating my will? So, Amanda, Susie's going to tell you, though, there's another word that goes with will, and it's called trust.

[A]

No, actually, what I'm going to tell her, kt, is that, Listen, Amanda, you given that your money is in most of it anyway, in a retirement account, number one, it's in a retirement account that's pre tax. Please listen to the April 21, 2024 podcast called Don't Be Partners with Uncle Sam. I wouldn't be doing that if I were you the way you're doing it, however, because it's an ira. Just designate the beneficiaries that you want on your beneficiary form and it goes directly to them and bypasses probate. You don't need a will simply to leave money that's in an IRA to somebody. However, is that all you really have? Do you not have anything around your house that anybody would want? Do you have all your paperwork in place that if all of a sudden you become sick, who's going to pay your bills for you? Who's going to, you know, do all these things for you? So you really need to think more about, can I leave the money that's in my ira, the wrong kind of IRA to somebody if I don't have a will? And how often should I update my will? What you should be doing is the must have docs you should go to musthavedocs.com you should absolutely get them. They are a living, revocable trust, an advance directive, a durable power of attorney for healthcare as well as finances as well as a will. You can update them as much as you want, but truthfully, just designate for your individual Retirement account the name of the people that you want to leave the money to. There you go, KT $99 for over $2,500 worth of state of I thought

[B]

the price was going to go up.

[A]

I don't know why his house didn't do that. Not my problem.

[B]

All right, everybody take it. I know what they're going to raise

[A]

it so I don't want them to. I hope they just leave it low for all of you forever. But there you go. What can I do?

[B]

Okay, here's the next question. Hello Susie and KT. I bought a house with my sister in 2020 but I would really like to have my own place. My question is how would it affect me or my sister tax wise for me to be on two mortgages? It certainly wouldn't make any sense for my sister to refinance just to remove my name. So I'll stay on the mortgage even though I wouldn't be living in this house. I'm just not sure if this will affect things in ways I don't know about. Is there anything I should be aware of?

[A]

So here's what's funny, Katie. I wrote these people back already. So again you need to know I go through the emails and when one of them touches my heart and this one touched my heart because here's a person that wasn't so much thinking about himself or herself, they were thinking about their sister and to make sure it was okay for them. And when I read something like that, I just like that so much. But here's essentially what I told them that I'm not sure anybody realizes. But when any of you are on the mortgage of a home, you have to realize that you are 100% legally responsible for that debt. So in this case, if the sister KT misses a payment, it's going to hit his credit. So then when he applies for his own mortgage, lenders are going to count that full mortgage payment also in his debt to income ratio. So it may hurt him and not allow him to even qualify for a mortgage or if he does, it will be at a higher interest rate. So that's just something so really it can reduce, you know, how much he can qualify for his interest rate, all of that. But here's the reality. As long as she's fine and can afford the mortgage, great. So let's say he gets a home, he can afford his mortgage, she's paying for hers. And now she's in a car accident, something happens and she can no longer work. Then the question becomes, can he afford both of those mortgages? His sisters as well as his own. So he has to understand the risk that he's in by being on that mortgage, if you understand the risks. Okay. But if at all possible, if she could refinance and just have it in her name, it would be so much better, actually, for him and for her, too. Not really, because I'm sure he's just on the mortgage and not on the title, so it doesn't really matter. I'm not sure about that. Right. But anyway, they just need to talk about. About it. So, you know, he just needs to know the risks of it. However, for all of you, if somebody asks you to co sign or be on a mortgage with them and they can't get the mortgage without you doing that, do yourself a favor and do them a favor and just don't do it. Don't do it. Don't do it. Because if something happens, they're laid off, they can't afford it. They don't tell you they're not paying the mortgage. They then ruin your FICO score. I'm telling you, if they can't afford it on their own, they can't afford to buy a home. Sometimes helping is hurting, and sometimes hurting is helping. KT next.

[B]

So next question is from Kristin. She said. Hi, Susie. I'm a longtime listener.

[A]

How come you don't laugh anymore? I'm serious. You used to laugh all the time on the podcast. I haven't heard you laugh lately.

[B]

I laughed when you went, not like you used to.

[A]

You used to crack up. Now you don't crack up anymore.

[B]

Well, these aren't laughable situations. That's one of the reasons.

[A]

Well, stop picking ones that are so serious. All right, go on.

[B]

All right, this is from Kristen. Hi, Susie. I'm a longtime listener, and I've been slowly converting my IRA to my Roth ira.

[A]

Good.

[B]

By myself through Vanguard.

[A]

Yeah, baby.

[B]

Good job, Kristen. Kristen. This year is the first year I've gotten a penalty as I did not withhold enough or pay enough throughout the year. It was $164, but everything counts these days. So Kristin was penalized 1 64.

[A]

Yeah.

[B]

Because she.

[A]

Yeah, yeah. She underpaid her Taxes? Yeah.

[B]

I have already converted this year, 40,000 when the market dropped. But I'm not sure how to avoid the not withholding enough penalty. It's kind of tricky, right? How do you do that, Susie?

[A]

So what are you doing? I wrote her back as well. What are you doing? Picking the ones that. Are you reading my mind?

[B]

Maybe? I can read your mind, though, right? Yeah, I can. She knows.

[A]

What am I thinking right now? Right now.

[B]

What do you want for lunch?

[A]

No, I'm not thinking that at all. I'm thinking, why doesn't she laugh like she used to? Anyway, here's the scoop, everybody. It is true that if you do a Roth conversion, you have to make sure, because you're going to owe ordinary income tax on whatever amount you converted. And you usually kind of have to calculate that when you convert it. So many people do withholding. Many people do estimated tax payments. However, if you want to avoid penalties, the way that you can make sure that you avoid penalties if you pay, at Least listen closely, 100% of last year's tax liability. So whatever you owed in taxes last year, or you're going to owe 110% if your AGI was $150,000 or more, if you just pay that in withholding, estimated payments, whatever it may be. So that's all you have to do. All right. And now you know.

[B]

All right, last question, Susie, is from Jason.

[A]

You didn't pick many today. You thought I was going to go on longer than I did, didn't you?

[B]

Usually she really. She goes overtime. And I'm saying, if anything, give them a little bit of a break.

[A]

So wait, everybody have to know what it's like here. I start to answer a question. If I go too long, she does this. She's doing it now.

[B]

We've got to tape us together.

[A]

Her hand is going counterclockwise, going in a circle, going.

[B]

My finger, my point.

[A]

Wrap it up, Susie. Wrap it up.

[B]

It's called a rap signal in TV world. Wrap it up. And the. The producer, the director is always behind the camera. And when you see that arm, you

[A]

know you have to wrap it.

[B]

They used to remember when they would wrap Oprah.

[A]

Yeah, big one. A real big one.

[B]

She did that. Who was her guy?

[A]

Mark. He was so great.

[B]

No, not Mark.

[A]

But anyway. But even more than that, I just have to tell everybody something else.

[B]

What's that?

[A]

So here we are taping, you know, the video to go on YouTube, right? And KT's in the room very close to me, just watching. And all of a Sudden, from the corner of my eye, I keep seeing her go to her hair and like get the, the hair out of her eyes as my signal to. Your hair is in your eyes.

[B]

Fix your hair, Susie.

[A]

Get it out. You try to talk and concentrate and listen to fits and everything with KT going with her hand back through her head. Get it out of your eyes, Kate. Susie, get it out of your eyes.

[B]

I did a lot of signals when she had the TV show. I would be out there in the studio with her. And finally Amy, our executive producer was so mad that I would distract her all the time or I would say no, stop, because I didn't like the way that she was sitting or slouching or how her shirt was buttoned. Some things like that.

[A]

It's been such a P and L, you know. Anyway, go on, Katie.

[B]

All right, my last and final question is from Jason. I like this question. Good morning, Susie and kt. Can you explain the difference between an individual and a custodial 529 plan?

[A]

I can't believe it. It.

[B]

What?

[A]

I wrote that back too.

[B]

All right, go on. My partner and I want to open a 529 for her 7 year old daughter. I am 46. My partner's 35. Thanks for the show. This is from Jason. And then at the end of this, this is the best part. This is why I picked you, Jason. P.S. her daughter already has a Roth for minors. Woohoo.

[A]

Now that line was the reason I wrote them back.

[B]

Yeah. And the reason I picked this. See, great minds think alike. Susie.

[A]

There you go.

[B]

I love this.

[A]

So Jason, since you already know the answer to this, we can just wrap the show. But for everybody who wants to know, very simple. Don't ever do a custodial 529 account. It's like a uniform gift to minors act account. It is is the property of the child, so the child owns it. It's going to hurt them for financial aid. Once they turn 18, the money is theirs, blah, blah, blah blah. If you do a straight 529 plan where the mom owns it, it's still the mom's asset. It doesn't hurt her daughter for financial aid. If the daughter doesn't want to go to school for whatever reason, she can transfer it to whoever she wants. Another child if they have it, or another beneficiary. And on to make it very simple, stay away from UGMA, UTMA and custodial 529 plans. Is that really it? I feel like it's so short today

[B]

that Is a wrap. That was a nice podcast. Very diversified, very informative, some simple questions, some a little more complicated.

[A]

It was not one complicated question.

[B]

There was one that what was it that you hate?

[A]

But that wasn't complicated. It was easy to know.

[B]

You just said, don't do it, everybody.

[A]

Don't do it. Right? And everything. All right, so until Sunday, when we will have another Susie school. I have no idea what the topic is going to be, but everybody remember, go to YouTube.com Susie Orman. Don't forget to subscribe because as you can tell, Ms. Travis is wanting us to put this podcast on YouTube. She wants to be visible. Is that true?

[B]

No, I just think you look great on YouTube. I think that you're very engaging and people will learn more by watching you than just listening to you. I really believe that. It's okay. We can do it. I'll spend more time. We'll put more effort into Susie because you will love watching her, especially when she gets real animated.

[A]

I just have to choose.

[B]

She made Keith turn red twice in the YouTube. So it's worth it just to watch it, to see what she says that makes Keith turn all red.

[A]

Yeah. But most of them will be just me, Katie and me and you. So you better be ready to do it. But wait, everybody, I just have to tell you one thing. Since we didn't have a whole lot of questions today, for some reason, Ms. Travis didn't pick a lot, which is when I was little, I would sit there because we only had one bathroom. And I would just sit in the little bathroom on the toilet with the toilet clothes. No big deal. I'd sit on the toilet watching my father shave and get ready to go out. Maybe it took him 15 minutes at most for everything. Then I would wait and my mom would come in and then she would put all this makeup on and it would take at leave half hour, 45 minutes just for the cream. Da, da da da da, everything. And I started to think, I go, mom, this is nuts. Look how long it takes you to get ready. And look how little it takes dad to get ready. Then we would go out shopping. I'd go up and be with my mom and we would go into these department stores and she would buy all this makeup. And when my dad would take me because for some reason one was always working, so I'd be with the other. My dad never bought anything like that. So finally I was maybe 8 years old now, and I'm sitting down with my mind go, mom, I want you to know I figured something Out. Makeup is an economic plot against women. Men don't do it, Mom. It takes us more time. And it's an economic plot. And because of that, how old do you think I was the first time that I put makeup on? And I had to put it on because somebody was photographing me, and so they made me put it on. How old do you think I was?

[B]

Probably your early 30s, right?

[A]

Yeah, I was 35. What made you say that?

[B]

Because as a waitress, you never wore makeup, right? Never.

[A]

I never. And when I was first a stockbroker, I never wore makeup. So I just. Because. Why? It was an economic plot against women. And to this day, what do I hate putting on more than anything else?

[B]

Kt so the makeup that she hates putting, she hates putting on makeup, but most of all, lipstick.

[A]

Hate it.

[B]

I mean, that's the. When we do Susie's makeup, the last thing we apply is lipstick. Absolutely. And then she. She has a tissue, as soon as she's done with her show or photograph or whatever it is, she just rubs it all off. Hates lipstick on her lip.

[A]

Hate makeup. Hate it, hate it, hate it. Anyway, until Sunday, there's really only one thing that we want you to remember. And what is that? Kt?

[B]

People first, then money, then things.

[A]

Now you stay safe, everybody. Bye. Bye.

[B]

Bye.

[A]

We are strong we are wise we will not apologize we are here we will thrive together we will we're the little bit of faith and everything it takes we are strong we are wise

[B]

Together we will rise.

[A]

Hi, everybody. Suzy O here. And I have to tell all of you, there is one benefit that I know all of you need and your corporations need to offer. And it comes from a company that I helped co found over 5 years ago by the name of Secure Save. So whether you're an employee or an employer, I want you to go to securesave.com Suzie S U Z E and take a look at what I have for you there. I promise you you're gonna like it.

[C]

All right, now, neither Suze Orman Media nor Suze Orman is acting as a certified financial planner advisor, a certified financial analyst, an economist, CPA, accountant, or lawyer. Neither Suze Orman Media nor Suze Orman make any recommendations as to any specific securities or investments. All content contained in this podcast is for informational and general purposes only and does not constitute financial accounting or legal advice. You should consult your own tax, legal and financial advisors regarding your particular situation. Neither Suze Orman Media nor Suze Orman accepts any responsibility for any losses which may arise from accessing or reliance on information in this podcast and to the fullest extent permitted by law, we exclude all liability for loss damages, direct or indirect, arising from the use of this information. The must have documents discussed in this podcast are legal documents created by a lawyer and distributed by Hay House. Thanks for listening.