I am 55 and just retired. I expect to have $10K in MAGI in 2015 from dividends in my taxable account. I want to convert $500K from a tIRA to a Roth IRA before I turn 70 to avoid taking minimum distributions and pay taxes on the tIRA withdrawals. This is pretty easy so far. However, I am signing up for ACA and the lower my income that I declare (over $20K) the larger my tax credit is for the ACA health insurance premium. For every $10K increase that I report in MAGI, my annual cost in health insurance increases $1K. I feel like this is one of those exercises in school where you are told that, “There are 2 trains leave the station at the same time..." Some people are better at those exercises than I am.
Any thoughts on what is the best strategy?
Any thoughts on what is the best strategy?