IRA management for max ACA benefit
I have a question the some here may know the answer to as it relates to monies in and out of an IRA.
I have about $8200 of tax deferred interest on some EE Savings Bonds. I have income from work in 2015 but will not have much income from work in 2016. For the purposes of the ACA tax credit I want to minimize my adjusted gross income for 2015 and generate taxable income in 2016.
Ideally I would like to cash in these Savings Bonds after the 1st of the year which makes the interest taxable income in 2016.
Can I use $6500 of these funds and make a contribution prior to 4/15/16 to my IRA for 2015, reducing my MAGI in 2015.....AND then in October 2016 (when I turn 59 1/2) take the $6500 back out creating taxable income in 2016?
Thanks in advance for your input.
Never surrender what you really want for what you want right now.