John Galt III
Thinks s/he gets paid by the post
- Joined
- Oct 19, 2008
- Messages
- 2,803
I googled around for a while, and can't find the answer. I am 65 and have to go on Medicare July 1, 2019. Therefore I need to cancel my beloved ACA 6/31/2019. I also have a pension I need to start on 8/1/2019. The pension will be a lump sum of $17,000, which, if taken in taxable form, would bump my annual MAGI for 2019 up from $16,700 to $33,700, and I'll have to pay back some of my subsidies ( I am assuming). I'm getting subsidies based on estimated 2019 income of $16,700. The basic question here, I guess, is 'since my extra income arrived after I was off the ACA, can the extra income be ignored for purposes of ACA subsidies?' I was hoping to take the $17,000 pension as a Roth IRA, which unfortunately I believe would be counted as income for MAGI, typically. Of course I could roll the $17,000 into a 401K and have it be a non-taxable event, but that is my second choice. Another question : Could I take the Roth IRA in 2019 but have it apply to the 2020 tax year? Thanks.