I know a lot of people here try to control their income for ACA subsidy purposes. Here is my situation:
Wife and I both retired - no W-2 income. One dependent at home for another 5 years.
Last year's MAGI was $95000,so based on that, I would not qualify for any ACA subsidy. If I could reduce it by ~$12000 or so, I would qualify and my Bronze plan would have a $0 premium (it would be $2100/mo otherwise). So, it makes sense to try to get my income down $12000 to avoid paying $25000 in premiums.
With no W-2 income, shielding income using an IRA is not an option. None of the ACA plans where I live (Texas) are HSA eligible, so that is out. I do have capital loss carryover, so I can get the $3000 reduction from that.
One option is to take some of my fixed income investment money and park it in a savings account that essentially will earn nothing.
Another option I'm considering is to take that money and put it into a multi-year guaranteed annuity (say, 5 years) to defer the income. I've never thought about annuities before (fees,etc), but even if they are not as good of an investment as what I currently have, something is at least better than nothing.
Any other thoughts here?
Wife and I both retired - no W-2 income. One dependent at home for another 5 years.
Last year's MAGI was $95000,so based on that, I would not qualify for any ACA subsidy. If I could reduce it by ~$12000 or so, I would qualify and my Bronze plan would have a $0 premium (it would be $2100/mo otherwise). So, it makes sense to try to get my income down $12000 to avoid paying $25000 in premiums.
With no W-2 income, shielding income using an IRA is not an option. None of the ACA plans where I live (Texas) are HSA eligible, so that is out. I do have capital loss carryover, so I can get the $3000 reduction from that.
One option is to take some of my fixed income investment money and park it in a savings account that essentially will earn nothing.
Another option I'm considering is to take that money and put it into a multi-year guaranteed annuity (say, 5 years) to defer the income. I've never thought about annuities before (fees,etc), but even if they are not as good of an investment as what I currently have, something is at least better than nothing.
Any other thoughts here?