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Old 10-09-2016, 06:39 PM   #21
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Originally Posted by pb4uski View Post
If you take $10-15k out of your Roth it should not at all affect your wife's ACA
subsidies since Roth distributions are not counted as income for ACA subsidy purposes.
I would like to see July 22nd established as a national holiday. The birthday of William Roth who made these accounts possible in the Taxpayer Relief Act of 1997
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Old 10-09-2016, 07:05 PM   #22
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Amen... what a great legacy.
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Old 10-09-2016, 07:20 PM   #23
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Originally Posted by pb4uski View Post
If you take $10-15k out of your Roth it should not at all affect your wife's ACA
subsidies since Roth distributions are not counted as income for ACA subsidy purposes.
+1
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Old 10-09-2016, 09:17 PM   #24
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Is there a way to remove some of my retirement money for a down payment without it going toward my yearly income? I am getting a subsidy for the ACA insurance, but it I get more money/income I loose the subsidy. I am 65, but my wife is 60 so no penalties should be involved. She is the only one on the ACA plan.
One other possible option is to take some money out of your house until your wife is on Medicare. We have a HELOC we use if we need more after tax cash to keep from going over the ACA cliff in a given year. We pay much less in interest than we gain from the subsidies so it works out for us now as we are both on ACA plans.

We also use an HSA and have a couple of small businesses with expenses that help lower our taxable income.
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Old 10-10-2016, 03:53 PM   #25
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The money in question is actually in Roth accounts. How would this work?
Looks like you can just withdraw whatever you need from your ROTH without it having any impact on your MAGI:

Are Roth Distributions Counted Towards MAGI? - Obamacare Facts
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Old 10-10-2016, 04:40 PM   #26
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Looks like you can just withdraw whatever you need from your ROTH without it having any impact on your MAGI:

Are Roth Distributions Counted Towards MAGI? - Obamacare Facts

Would 72t be counted, they seem to word it that they would.


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Old 10-10-2016, 05:09 PM   #27
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Would 72t be counted, they seem to word it that they would.


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a 72t would be withdrawing from an IRA, not a Roth IRA. It would be counted for income on your tax return and MAGI. The only part that might not be taxed would be the prorated part of the distribution for which you had after tax contributions.
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Old 10-10-2016, 06:49 PM   #28
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It is possible to withdraw Roth money in a way that is not taxed or penalized but also not qualified. I think being over 59.5 but withdrawing from a Roth account <5 years old is one. Sounds like that might be a problem if the answers we're finding are being precise with the term "qualified" and not just assuming that's the only way to withdraw penalty and tax free.
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Old 10-10-2016, 08:09 PM   #29
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Both of our Roth accounts are 10+ years old.
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Old 10-10-2016, 10:58 PM   #30
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It is possible to withdraw Roth money in a way that is not taxed or penalized but also not qualified. I think being over 59.5 but withdrawing from a Roth account <5 years old is one. Sounds like that might be a problem if the answers we're finding are being precise with the term "qualified" and not just assuming that's the only way to withdraw penalty and tax free.
I suspect that the "qualified" is mis-used in the reference....that is, "qualified" is sufficient but not necessary for not messing up the ACA subsidy. Another
non-qualified withdrawal is withdrawal of Roth contribution when you are
< 59.5 .......not taxed/penalized and, I believe, doesn't affect ACA subsidy either. I'd be inclined to go w/ the MAGI criteria.
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Old 10-11-2016, 05:50 AM   #31
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One other possible option is to take some money out of your house until your wife is on Medicare. We have a HELOC we use if we need more after tax cash to keep from going over the ACA cliff in a given year. We pay much less in interest than we gain from the subsidies so it works out for us now as we are both on ACA plans.

We also use an HSA and have a couple of small businesses with expenses that help lower our taxable income.
Great idea on the HELOC withdrawals.
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