Lisa99
Thinks s/he gets paid by the post
- Joined
- Aug 5, 2010
- Messages
- 1,440
We've now been retired for four years and because of the ACA cliff are able to withdraw significantly less than we had planned.
I'm considering doing a large one-time sale from Vanguard to put us back in line with our planned spending while also enabling us to do some traveling which was part of our retirement plans. After this one year withdrawal we would be able to go back to the lowered withdrawals which is well below the cliff.
Before I do it I would like to verify that I have the math right. I'm going to use real numbers so there is no confusion:
2020 Planned Income (before considering the large withdrawal)
Pension - 12k/year
Dividends - $13k/year
Withdrawals from Vanguard - ~$50k ($25k of which is LTCG)
Planned MAGI for 2019 - $50k
2020 Fed Income Tax - ~1k
No state taxes
2020 Adjusted Scenario (one time withdrawal)
Pension - $12k/year
Dividends - $13k/year
Withdrawal from Vanguard - $140k ($90k LTCG)
MAGI - $115k
Federal Tax - $11k
Penalty for going over the ACA cliff - ~$20k??
Gross cash in 2020 with adjusted plan - $165k ($140k Vanguard + pension + dividends)
Net after penalty and taxes -$134k
Are there any gotchas that I'm not seeing?
Thanks for you help!
I'm considering doing a large one-time sale from Vanguard to put us back in line with our planned spending while also enabling us to do some traveling which was part of our retirement plans. After this one year withdrawal we would be able to go back to the lowered withdrawals which is well below the cliff.
Before I do it I would like to verify that I have the math right. I'm going to use real numbers so there is no confusion:
2020 Planned Income (before considering the large withdrawal)
Pension - 12k/year
Dividends - $13k/year
Withdrawals from Vanguard - ~$50k ($25k of which is LTCG)
Planned MAGI for 2019 - $50k
2020 Fed Income Tax - ~1k
No state taxes
2020 Adjusted Scenario (one time withdrawal)
Pension - $12k/year
Dividends - $13k/year
Withdrawal from Vanguard - $140k ($90k LTCG)
MAGI - $115k
Federal Tax - $11k
Penalty for going over the ACA cliff - ~$20k??
Gross cash in 2020 with adjusted plan - $165k ($140k Vanguard + pension + dividends)
Net after penalty and taxes -$134k
Are there any gotchas that I'm not seeing?
Thanks for you help!