Trawler
Recycles dryer sheets
I have read thru much about ROTH conversions to drive MAGI for the benefit of ACA subsidies and DW and I currently do this. What I did not see is if anyone draws $$ from Roth (non income event) to cover expenses from 59.5 to Medicare 65. I am 55 and DW is 58 this year. We have been working ON income plan to take us to 65 and what sources to use to be most efficient. We have been depleting or non qualified accounts to fund expenses and these accounts will deplete just after 59.5. In addition we have 2yr years expenses in cash cushion and with our normal annual WD this month will be back three years.
Our spending plan calls for $72K per year plus inflation of next 10years. Once we hit SS and start drawing income from a income annuity and SS at 65 67 or 70 we will be in the 25% tax bracket even with estimated RMD. So then from 59.5 till 65 do we take all $72K in taxable IRA which will put use at upper end of 15% tax bracket and forgo ACA Subsidy which is currently $9,732 (200% FPL LEVEL) AND IS 12.2% of $72k and likely more as we age? Or to we reduce our T IRA draw down thru say 200 FPL and draw from Roth keep the subsidy. OR somewhere in the middle. We have enough in Roths to fund this level and then a little left over. We are not concerned about taxes for any heirs on leftover T IRA. what are your thoughts?
Our spending plan calls for $72K per year plus inflation of next 10years. Once we hit SS and start drawing income from a income annuity and SS at 65 67 or 70 we will be in the 25% tax bracket even with estimated RMD. So then from 59.5 till 65 do we take all $72K in taxable IRA which will put use at upper end of 15% tax bracket and forgo ACA Subsidy which is currently $9,732 (200% FPL LEVEL) AND IS 12.2% of $72k and likely more as we age? Or to we reduce our T IRA draw down thru say 200 FPL and draw from Roth keep the subsidy. OR somewhere in the middle. We have enough in Roths to fund this level and then a little left over. We are not concerned about taxes for any heirs on leftover T IRA. what are your thoughts?