Popsicletoes
Dryer sheet aficionado
- Joined
- Apr 13, 2021
- Messages
- 25
I’m 49, DH is 53, and we plan to retire next year.
We have about 1.3M in combined retirement accounts (IRA, 401k, Roth), which we can’t touch yet for at least 6.5 more years.
We have close to 900k liquid money (400k in taxable brokerage and the rest in regular savings accounts).
The problem is, we just opened the brokerage account this year, so we have to wait until Feb 2022 before we can sell anything to qualify for long term cap gain bracket.
It’s my understanding that ACA requires you to estimate your annual income in Jan of the same year, which means I can still take a little bit out of the brokerage account in Feb so we can report it as taxable income, yes? Does it matter if we pay 0 taxes on the sale due to low cap gain and little dividends (they’re all in ETFs so they’re quite tax efficient).
Since our spending has been consistently in the 50k - 60k range for years (incl. healthcare) I plan to take 25k from brokerage account and 25k or so from regular savings to keep taxes low and still qualify for ACA subsidy. Will this work?
I’m not sure what else we can do to make the 138% FPL for ACA subsidy. Maybe Roth conversion?
Any input will be greatly appreciated!
We have about 1.3M in combined retirement accounts (IRA, 401k, Roth), which we can’t touch yet for at least 6.5 more years.
We have close to 900k liquid money (400k in taxable brokerage and the rest in regular savings accounts).
The problem is, we just opened the brokerage account this year, so we have to wait until Feb 2022 before we can sell anything to qualify for long term cap gain bracket.
It’s my understanding that ACA requires you to estimate your annual income in Jan of the same year, which means I can still take a little bit out of the brokerage account in Feb so we can report it as taxable income, yes? Does it matter if we pay 0 taxes on the sale due to low cap gain and little dividends (they’re all in ETFs so they’re quite tax efficient).
Since our spending has been consistently in the 50k - 60k range for years (incl. healthcare) I plan to take 25k from brokerage account and 25k or so from regular savings to keep taxes low and still qualify for ACA subsidy. Will this work?
I’m not sure what else we can do to make the 138% FPL for ACA subsidy. Maybe Roth conversion?
Any input will be greatly appreciated!