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Stephen is in Knoxville. Hi, Stephen. How are you? I'm doing wonderful. How's it going, Dave and

Jade? Better than we deserve. What's up? Hey, so my wife and I, we are ministers, and right now we're

bringing in about, I don't know, 47,000 or so a year.

The question I have is, and we have no debt, and we have a fully funded emergency fund of about

$10,000.

The question I have is she has an old 401K, and it's about $65,000.

And I was wondering, this from her previous job,

is it a good idea to roll that over into a Roth IRA,

pay the taxes on it now, and then continue to fund that Ross?

If you're 100% debt-free and you have extra money,

that's house and everything, then I would consider doing that. Otherwise,

I wouldn't. You wouldn't roll that into a office? No, I would not. Do you have a house mortgage?

No, no, we rent. We travel a lot as ministers. Okay. Do you have the extra money to pay the taxes that

that would create, $15, $20,000 if you did that? Would the taxes just come out of what's been built? No, I don't want you to do that. I want you to roll the whole thing or don't do it. Yeah, so we do have $25,000 in a taxable brokerage account as well. In addition to your emergency fund. Exactly. And you're 100% debt free.

100%. Okay. Then if you want to roll that to a Roth and you want to use that brokerage fund to pay the

taxes, you're going to come out ahead. It has the mathematical effect of having invested an extra 20,000

into your Roth. That's what the math effect of it. But if you take the 60 and you drain it down to 40 just to pay the taxes, that 20 you took out to pay taxes would have grown to enough to pay the taxes.

So all you do is break even.

How important is it that they do it now versus waiting several years?

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