OK... keeping with the ACA subsidy and the tax planning around it... I think that I have come up with a way to possibly fix a problem after the year is closed....
I am doing this calculation so I can sell in my taxable account at a zero tax rate and only cost me ACA subsidy... this allows me to refill my cash account.... or rebalance if I want....
Let me give you my thinking and throw darts at it....
First, you have to have some earned income... if not, it will not work...
Second, put max amount of money into a ROTH account during the year (let's say 2015)....
Now, if you get more income than you thought with year end distribution and you only find this out when filing out your tax return, you can recharaterize your ROTH to a tIRA and now reduce your income by a pretty good amount....
When I was doing my calculations, when I hit the cliff my marginal tax rate was over 36%.... so it would make sense to fix this year and worry about the other later on....
Thoughts