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How to estimate MAGI for ACA once ER
Old 05-09-2016, 08:28 AM   #1
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How to estimate MAGI for ACA once ER

Researching the ACA plan and estimating MAGI for next year seems bring up more questions than answers.

I signed up for the ACA this year and muddled through all the self-employed income questions since they do not give a clear picture of actual income. I finally entered regular income at above 67,000 since a subsidy was irrelevant anyway.

This leads me to the ACA open enrollment this year for 2017. How do you estimate your income when you retire?

I will be retiring later this year so income will drop dramatically next year and plan to withdrawal from IRA's or make IRA ---> ROTH conversions if possible. Also, interest and dividends will come into play. I know the best situation is to get MAGI at 35,000 so my ACA premium is lower. What would I have to provide to ACA to prove my estimate? Last years tax return would not be correct.

Also, if my MAGI estimate is at 35,000 the Silver Plans deductible is much lower than 40,000 MAGI. How does that work out if my income hits 40,000 but my estimate was for 35,000?

What would I have to provide to the ACA to confirm my MAGI for next year? Also, I read that you must take monthly IRA distributions instead of lump sum. Is this correct? I have to be very careful because I don't want to be thrown into the Medicare category since our state did not expand Medicare.

Is the only option to pay the full ACA premium and get the money back at tax time? I really don't want to do this but dealing with the government is such a great experience.

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Old 05-09-2016, 09:02 AM   #2
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my GF is in ACA. She has no income other than IRA to Roth conversions. We sent ACA a monthly statement from Schwab which showed the conversion. That did the trick for her.
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