This year was my first year on an ACA plan. So far not as bad I had thought and planned for. Cobra would have been $25k. Right now I am looking at $1300 paid out. Not bad! I am also looking to make a year end LTCG withdrawal, possibly way over my $39K estimated ACA for this year. I am flexible, so I'm trying to maximize the LTCG withdrawal without tilting taxes and healthcare too much.
Current HC Status:
Arizona 85365 zip code
Family of 4
2022/23 ACA Estimated Income $39,000 / ~140% FPL
Paying $0 HC premium, AB Silver 5 non-HSA HMO.
So far paid $1,270 in HC costs toward a $3400 max OOP.
Year end income will be $11k made up of a one time $6k bonus, $2k yrly pension and $3k (son's income.) If I sell $28k in LTCG gains this year I will be right on target with my ACA estimate.
Questions:
1) Instead of $28K in LTCG, what if I did the maximum 0% Federal LTCG limit, around $100K? Would I have to payback the HC subsidy or would that be capped? Any other penalties?
2) When is a good time to do this? Now or wait until mid December? Do i need to let my HC provider Aetna Banner know that late in the year?
3) If not a good idea, any other ways to maximize the LTCG withdrawal or just stick to my ACA estimate or one of the FPL levels?
4) 2023/24 ACA estimate will be around $42K. 140% FPL again. ROTH distributions start in Oct 2024 at 59 1/2. Do ROTH distributions provide further flexibility with ACA? Do qualified ROTH Dist. count toward ACA MAGI?
Current HC Status:
Arizona 85365 zip code
Family of 4
2022/23 ACA Estimated Income $39,000 / ~140% FPL
Paying $0 HC premium, AB Silver 5 non-HSA HMO.
So far paid $1,270 in HC costs toward a $3400 max OOP.
Year end income will be $11k made up of a one time $6k bonus, $2k yrly pension and $3k (son's income.) If I sell $28k in LTCG gains this year I will be right on target with my ACA estimate.
Questions:
1) Instead of $28K in LTCG, what if I did the maximum 0% Federal LTCG limit, around $100K? Would I have to payback the HC subsidy or would that be capped? Any other penalties?
2) When is a good time to do this? Now or wait until mid December? Do i need to let my HC provider Aetna Banner know that late in the year?
3) If not a good idea, any other ways to maximize the LTCG withdrawal or just stick to my ACA estimate or one of the FPL levels?
4) 2023/24 ACA estimate will be around $42K. 140% FPL again. ROTH distributions start in Oct 2024 at 59 1/2. Do ROTH distributions provide further flexibility with ACA? Do qualified ROTH Dist. count toward ACA MAGI?