Suze Orman explained on her podcast why a retiree’s $1.6 million 401(k) rollover plan would backfire

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Gemma LewisSun, Jun 29, 2025, 10:45 AM 6 min readSuze Orman's Official Channel/YouTubeMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.Suze Orman was as candid as ever when Gina, a 56 year-old retiree, called into her Women & Money podcast earlier this year.Orman was quick to shoot down Gina’s plan, which involved converting a $1.6 million pretax 401(k) into a Roth 401(k), and eventually into a Roth IRA.Orman was shocked after learning her caller had received this financial advice from her company’s former benefits department. She retorted, “With the utmost of respect to your benefits person – are you crazy? Really?”Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howI'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 4 of the easiest ways you can catch up (and fast)You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s howOrman went on to explain that converting from a pretax 401(k) to any Roth account would trigger taxes upfront, as it involves moving funds from a tax-deferred to a tax-free account.She quickly shot down the plans Gina had for her Roth IRA.Shuffling accounts, as it turns out, isn’t the tax loophole Gina thought it to be.The American system is notoriously convoluted and clunky, and the Tax Policy Center claims it’s getting even more complicated every year.In an interview with MSNBC earlier this year, Orman was asked what she thought the biggest money problem is for women that are around Gina’s age.She said women over 50 tend to avoid dealing with money and don’t make plans to take care of themselves later in life, but tend to focus on their family instead.“Women still give more to others than we give to ourselves and that is a really big mistake.”For those of us without a direct line to Orman, services like Advisor.com can help. Advisor.com connects you with vetted fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances, and Adivsor.com matches you with a short list of certified experts to choose from.You can then set up an introductory meeting with no obligation to hire.Read more: This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here’s how to buy the coveted asset in bulkSuze Orman has long been a passionate advocate for long-term wealth generation.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,182.68 +9.61 (+0.16%)Dow 3043,941.94 +122.67 (+0.28%)Nasdaq20,305.04 +31.58 (+0.16%)Russell 20002,177.23 +4.70 (+0.22%)VIX17.06 +0.74 (+4.53%)Gold3,305.90 +18.30 (+0.56%)PortfolioSign in to access your portfolioSign inTop gainersNEGG Newegg Commerce, Inc. 15.28 +3.20 (+26.52%)BUR Burford Capital Limited 14.03 +2.34 (+20.02%)JOBY Joby Aviation, Inc. 10.84 +1.40 (+14.80%)MGNI Magnite, Inc. 24.14 +3.03 (+14.38%)HPE Hewlett Packard Enterprise Company 20.60 +2.18 (+11.87%)Top losersCHE Chemed Corporation 481.88 -77.48 (-13.85%)BJ BJ's Wholesale Club Holdings, Inc. 106.45 -7.80 (-6.83%)YPF YPF Sociedad Anónima 31.17 -2.17 (-6.49%)NXT Nextracker Inc. 54.70 -3.62 (-6.21%)HTZ Hertz Global Holdings, Inc. 6.70 -0.38 (-5.30%)Most activeSOFI SoFi Technologies, Inc. 18.37 +1.18 (+6.90%)NVDA NVIDIA Corporation 157.85 +0.10 (+0.06%)NU Nu Holdings Ltd. 13.83 +0.58 (+4.38%)HOOD Robinhood Markets, Inc. 92.79 +9.76 (+11.75%)LCID Lucid Group, Inc. 2.1050 -0.0150 (-0.71%)Earnings eventsTrending tickersHOOD Robinhood Markets, Inc. 92.85 +9.82 (+11.83%)BMNR Bitmine Immersion Technologies, Inc. 24.77 +20.51 (+480.77%)BBAI BigBear.ai Holdings, Inc. 7.05 +1.21 (+20.74%)ORCL Oracle Corporation 219.06 +8.81 (+4.19%)SOFI SoFi Technologies, Inc. 18.44 +1.26 (+7.34%)Top economic events