TimSF
Recycles dryer sheets
I signed up for ACA for 2014 and, based on projected 2014 income, am receiving federal subsidies. I want to make as sure as I can that my 2014 income does not push me over the subsidy cliff.
I will have modest income from part-time teaching and contract work. I am thinking of opening a solo 401k with Fidelity and donating most or all of this income, up to the federal limit of $23k. I have checked the MAGI definition for ACA, and it appears to exclude donations to qualified plans (line 28 of 1040).
Is this strategy sound? Am I missing something? Thanks.
I will have modest income from part-time teaching and contract work. I am thinking of opening a solo 401k with Fidelity and donating most or all of this income, up to the federal limit of $23k. I have checked the MAGI definition for ACA, and it appears to exclude donations to qualified plans (line 28 of 1040).
Is this strategy sound? Am I missing something? Thanks.