TAX question ACA

[NoOneGetsIt]

Ok, so another ACA question...

I may be quite close this year at staying under the $64k limit on ACA to get the subsidy. This was the year I was laid off so I have some income, plus unemployment + capital gains and dividends. All of that may come mighty close and may go over so....

My question is this....If I get to the end of the year and I am over, can I put money into an IRA and have that lower my MAGI so I still get the subsidy and don't have to pay full price for the plan I selected

And if I am UNDER then I can put money I earned into a ROTH IRA.

thanks for any input....you guys are great!

 

[bingybear]

If you have the earned income to fund an IRA or Roth as you choose. In RE I have bought health insurance that is HSA compatible. This way funding the HSA reduces income. I used cobra for my first 18 months of RE... so no subsidy. But I used the reduction in income to allow more roth conversions.

 

[SecondCor521]

Yes, it will work the way you are thinking, as long as you have the earned income to qualify to make the contribution as bingybear says.

Realizing a capital loss and any of the other typical things that reduce AGI will also work.