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10-09-2016, 05:39 PM
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#21
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,358
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 Quote:
Originally Posted by pb4uski
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.
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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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10-09-2016, 06:05 PM
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#22
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Amen... what a great legacy.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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10-09-2016, 06:20 PM
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#23
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Moderator
Join Date: Oct 2010
Posts: 10,725
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Quote:
Originally Posted by pb4uski
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.
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+1
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10-09-2016, 08:17 PM
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#24
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Quote:
Originally Posted by reubenray
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.
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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.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
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10-10-2016, 02:53 PM
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#25
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Recycles dryer sheets
Join Date: Jun 2014
Posts: 67
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Quote:
Originally Posted by reubenray
The money in question is actually in Roth accounts. How would this work?
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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
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10-10-2016, 03:40 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,069
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Quote:
Originally Posted by merlin3942
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Would 72t be counted, they seem to word it that they would.
Sent from my iPhone using Early Retirement Forum
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10-10-2016, 04:09 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,511
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Quote:
Originally Posted by dallas27
Would 72t be counted, they seem to word it that they would.
Sent from my iPhone using Early Retirement Forum
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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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10-10-2016, 05:49 PM
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#28
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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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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10-10-2016, 07:09 PM
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#29
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Recycles dryer sheets
Join Date: Aug 2012
Location: Elberta, AL
Posts: 146
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Both of our Roth accounts are 10+ years old.
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10-10-2016, 09:58 PM
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#30
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
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Quote:
Originally Posted by Animorph
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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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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10-11-2016, 04:50 AM
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#31
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,795
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Quote:
Originally Posted by daylatedollarshort
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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Great idea on the HELOC withdrawals.
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