I’m 60, and retired in 2015 (in large part due to this forum – Thank You!). Wife retired in 2017. Son started college this fall. Cobra expires in a month, at the end of 2018. The next 5 years will be very expensive, as expected. Fortunately, we are financially independent.
For our family of three, California Covered quotes $3 per month if our income is $81,781 or less, and $1782 per month if our income is $81,782. EPO Bronze plan. (Who puts a step function into a system like this? Am I missing something?)
Our expenses are much higher than $81K, but I am considering withdrawing the additional required income (and paying the additional marginal tax) in 2018, in order to stay under the ACA cliff for 5 years until Medicare kicks in.
Question – Can I withdraw $435,000 from my 401K accounts in the next month, transfer it to a taxable mutual fund, and pay 2018 taxes on it, in order to stay under the ACA Cliff from 2019 to 2024? Are there any pitfalls? Am I missing something?
Would there be any advantage to taking out a HELOC instead? Leave the big tax bill for later?
For our family of three, California Covered quotes $3 per month if our income is $81,781 or less, and $1782 per month if our income is $81,782. EPO Bronze plan. (Who puts a step function into a system like this? Am I missing something?)
Our expenses are much higher than $81K, but I am considering withdrawing the additional required income (and paying the additional marginal tax) in 2018, in order to stay under the ACA cliff for 5 years until Medicare kicks in.
Question – Can I withdraw $435,000 from my 401K accounts in the next month, transfer it to a taxable mutual fund, and pay 2018 taxes on it, in order to stay under the ACA Cliff from 2019 to 2024? Are there any pitfalls? Am I missing something?
Would there be any advantage to taking out a HELOC instead? Leave the big tax bill for later?