I am 60, and DW is almost 55. We have no pension. Only savings (before and after tax) and SS. We both plan to apply for SS at the age of 70.
We will need to get ACA next year. I have a spreadsheet to calculate Roth conversion and ACA subsidy numbers. Below is roughly how the plan goes for the first year (2017).
Income:
Roth convert from my IRA - $70,000.
Interest / dividend from after tax accounts: $10,000
Muni dividend: $10,000
Deduction:
Standard deduction & personal exemption (family of 4): $28,600 ($12,600 + $4000X4)
HSA contribution: $7,750
AGI (roth + interest/dividend - HSA):
$70,000 + $10,000 - $7,750 = $72,250
Taxable Income:
$72,250 - $28,600 = $43,650
MAGI for ACA (add Muni dividend to AGI):
$72,250 + $10,000 = $82,250. No subsidy if this amount is > $97,000.
Do I have the correct understanding how these numbers are generated?
We will need to get ACA next year. I have a spreadsheet to calculate Roth conversion and ACA subsidy numbers. Below is roughly how the plan goes for the first year (2017).
Income:
Roth convert from my IRA - $70,000.
Interest / dividend from after tax accounts: $10,000
Muni dividend: $10,000
Deduction:
Standard deduction & personal exemption (family of 4): $28,600 ($12,600 + $4000X4)
HSA contribution: $7,750
AGI (roth + interest/dividend - HSA):
$70,000 + $10,000 - $7,750 = $72,250
Taxable Income:
$72,250 - $28,600 = $43,650
MAGI for ACA (add Muni dividend to AGI):
$72,250 + $10,000 = $82,250. No subsidy if this amount is > $97,000.
Do I have the correct understanding how these numbers are generated?