Situation: 57 and use rule of 55 for penalty free withdrawal from 401K for all our spending money, about $160K/year, not including college costs covered by 529 funds.
2 kids in college funded via 529 funds.
Currently on COBRA until August 2022, so IRMAA not an issue until then.
Question: Would it make any sense to simply withdraw (instead of Roth convert) 401K funds this year well into the 24% bracket in order to keep my income low in subsequent years in order to qualify for IRMAA and possibly FAFSA? I'm not asking for specific numbers, calculators etc as I don't trust my ability to use such tools correctly, nor my guesses as what the future might bring. I'm just asking if it might be somewhat sensible, or really dumb?
Since I'll be on COBRA for 7 months in 2022, would it make sense to do the same next year as well?
Thanks
2 kids in college funded via 529 funds.
Currently on COBRA until August 2022, so IRMAA not an issue until then.
Question: Would it make any sense to simply withdraw (instead of Roth convert) 401K funds this year well into the 24% bracket in order to keep my income low in subsequent years in order to qualify for IRMAA and possibly FAFSA? I'm not asking for specific numbers, calculators etc as I don't trust my ability to use such tools correctly, nor my guesses as what the future might bring. I'm just asking if it might be somewhat sensible, or really dumb?
Since I'll be on COBRA for 7 months in 2022, would it make sense to do the same next year as well?
Thanks