almost_there
Dryer sheet aficionado
- Joined
- Sep 11, 2007
- Messages
- 41
I am 63 and am planning to retire before FRA at 66. At that point I will begin collecting social security. I have most of my assets (approx 1.5M) in tax deferred accounts (a 401K and 2 IRAs). My plan was to use the intervening year ( or possibly 2) to withdraw some assets from the tax advantaged accounts and pay the taxes while I had little or no income (since I retired) and prior to social security payments. Unfortunately, I did not consider the impact of health care insurance prior to becoming medicare eligible. If I do the withdrawals it will count as income and reduce or eliminate any healthcare insurance subsidy. If I do not do the withdrawals I can qualify for the subsidy. So is there any strategy for optimizing the trade-off between the income and the healthcare insurance subsidy or is this the typical stuck between a rock and a hard place scenario?