I have some ETFs that have a history of having year end distributions. Unfortunately I can only guess the amount. My personal cusp is $1,342 per month, which is max income for Medicaid. Dividends and interest have been crafted to go just under the max limit. The problem is special year end distributions will put me over the limit and I will loose my coverage.
Just a note, the ACA tax credits are yearly based, while Medicaid is monthly based.
So what are creative ways to reduce MAGI income for a month? I am thinking of buying some out of the money options and hope they expire worthless. Another option is to break a CD and use the penalty for early withdrawal to reduce income. Any other ideas?
Just a note, the ACA tax credits are yearly based, while Medicaid is monthly based.
So what are creative ways to reduce MAGI income for a month? I am thinking of buying some out of the money options and hope they expire worthless. Another option is to break a CD and use the penalty for early withdrawal to reduce income. Any other ideas?