I'm signed up for a Silver plan with Cost Sharing Reductions (CSR) for this year. Assuming my health holds for the next 10 days, I will have had no health expenses this year other than a flu shot and a physical, both 100% covered. I signed up for a Bronze plan for 2018 and next year intend to do Roth conversions up to 400% of Federal Poverty Level (FPL). When I signed up for next year, I said my MAGI would be about 399% of FPL in 2018. I'll get a substantial premium subsidy if I stay below 400% of FPL.
I had intended to do Roth conversions this year only up to 250% of FPL so I would remain eligible for Cost Sharing Reductions. Since it appears I won't have any CSRs this year and am not signed up for them next year, is there any danger to my MAGI in 2017 going over 250% of the Federal Poverty Level? If not, I'd like to increase the amount of my Roth conversions this year.
I itemize thanks mainly to my high property tax. I was putting my numbers into taxcaster, and if my Roth conversions only put my MAGI up to 250% of FPL, I won't owe any federal tax at all this year. If I increase my Roth conversions above 250% of FPL this year, for each additional $1,000 I convert up to about $8,000, my marginal tax rate would only be about 11% in federal tax. BTW, I suspect that the reason for the strange 11% marginal rate is that it's a crazy mix of additional taxable income, and health insurance subsidy & medical deduction going down as MAGI goes up.
I had intended to do Roth conversions this year only up to 250% of FPL so I would remain eligible for Cost Sharing Reductions. Since it appears I won't have any CSRs this year and am not signed up for them next year, is there any danger to my MAGI in 2017 going over 250% of the Federal Poverty Level? If not, I'd like to increase the amount of my Roth conversions this year.
I itemize thanks mainly to my high property tax. I was putting my numbers into taxcaster, and if my Roth conversions only put my MAGI up to 250% of FPL, I won't owe any federal tax at all this year. If I increase my Roth conversions above 250% of FPL this year, for each additional $1,000 I convert up to about $8,000, my marginal tax rate would only be about 11% in federal tax. BTW, I suspect that the reason for the strange 11% marginal rate is that it's a crazy mix of additional taxable income, and health insurance subsidy & medical deduction going down as MAGI goes up.