Islandtraveler
Recycles dryer sheets
2017 will represent the first full calendar year that we are retired. I am 58 and DW is 56. We have one Son that is 21 and attending college. November 1st represents the first opportunity to examine Health insurance through the government exchange. We currently pay $18,300 per year for coverage. I calculate my annual income to be close to 80k comprising of about 70 in dividends and 10 in Muni bond income. This puts us just at the edge of the “cliff” as it relates to the AHC subsidies. Based upon what I have read, I can subscribe to a high deductable plan, open a HSA and contribute $6,750 for the year. I can deduct that contribution from my MAGI and fall well within the threshold for the subsidies. This should represent a savings of over $11,000 for the year in premiums in addition to providing another tax deferred investment account.
Does this sound correct to you? Am I missing anything? I do feel a bit conflicted about this strategy as it feels like I am gaming the system. On the other hand, I think I got hosed on taxes for a good amount of years. Any thoughts? Thanks