I had originally planned to FIRE at the end of this year, but due to a merger and a change of numerous mega corp policies I decided to work about 10-12 more weeks into 2020. Here is my situation:
Both of us are 61 years old (married filing jointly)
Roth plus non-cola pension will cover our expenses until 65
Managing MAGI for ACA until 65 when we get Medicare
Social security deferred until 67
My working plan:
Contribute the IRA max 401k standard and catch up contributions in the first quarter of 2020.
Plan for a spousal IRA max contribution
Maximim pro-rated annual HSA contributions while working.
All of the above will keep my MAGI and taxable income very low.
I will work until my remaining year pension benefits plus MAGI from earned income plus dividends/capital gains will equal 2x the Federal Poverty Level, thus maximizing ACA subsidy for the remainder of the year after retirement.
Since I also qualify for a substantial amount of paid time off in the first quarter and we don't have any big plans before summer this seems to be an optimum scenario.
Am I overlooking anything? Other considerations?
I think I will have:
Salary - 401k contributions - Spousal IRA - HSA contributions + Pension + Taxable dividends + Capitals gains = MAGI.
MAGI-$24K = Taxable income.
Extra expenses compared to retiring on 1 January are social security, medicare, corporate health insurance premiums and deductible.
All thoughts are appreciated - Thanks in advance.
For reference: http://laborcenter.berkeley.edu/pdf/2019/magi.pdf