Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Problem: I may have gotten myself into a bit of a pickle with complicated option trades. I can probably figure it all out by December 30 but if I make a mistake, it could end up being quite costly because of ACA MAGI income I am supposed to have in 2016. I am trying to land my MAGI plane on a $23,000 runway and if I undershoot or overshoot it is going to be expensive.
One way I think I can easily fix the problem of too low a MAGI to have qualified for subsidies at all (Medicaid territory) is to do a Roth conversion now and then re-characterize all or a portion of it after I figure out our actual MAGI next year.
That should work, right? It seems like it should work. The Roth conversion would be counted as income for MAGI calculations but if you later recharacterize it, you remove that income.
One way I think I can easily fix the problem of too low a MAGI to have qualified for subsidies at all (Medicaid territory) is to do a Roth conversion now and then re-characterize all or a portion of it after I figure out our actual MAGI next year.
That should work, right? It seems like it should work. The Roth conversion would be counted as income for MAGI calculations but if you later recharacterize it, you remove that income.