Removing Retirement Money?

[dallas27]

Looks like you can just withdraw whatever you need from your ROTH without it having any impact on your MAGI:

Are Roth Distributions Counted Towards MAGI? - Obamacare Facts

Would 72t be counted, they seem to word it that they would.


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[bingybear]

Would 72t be counted, they seem to word it that they would.


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a 72t would be withdrawing from an IRA, not a Roth IRA. It would be counted for income on your tax return and MAGI. The only part that might not be taxed would be the prorated part of the distribution for which you had after tax contributions.

 

[Animorph]

It is possible to withdraw Roth money in a way that is not taxed or penalized but also not qualified. I think being over 59.5 but withdrawing from a Roth account <5 years old is one. Sounds like that might be a problem if the answers we're finding are being precise with the term "qualified" and not just assuming that's the only way to withdraw penalty and tax free.

 

[reubenray]

Both of our Roth accounts are 10+ years old.

 

[kaneohe]

It is possible to withdraw Roth money in a way that is not taxed or penalized but also not qualified. I think being over 59.5 but withdrawing from a Roth account <5 years old is one. Sounds like that might be a problem if the answers we're finding are being precise with the term "qualified" and not just assuming that's the only way to withdraw penalty and tax free.

I suspect that the "qualified" is mis-used in the reference....that is, "qualified" is sufficient but not necessary for not messing up the ACA subsidy. Another
non-qualified withdrawal is withdrawal of Roth contribution when you are
< 59.5 .......not taxed/penalized and, I believe, doesn't affect ACA subsidy either. I'd be inclined to go w/ the MAGI criteria.

 

[brucethebroker]

One other possible option is to take some money out of your house until your wife is on Medicare. We have a HELOC we use if we need more after tax cash to keep from going over the ACA cliff in a given year. We pay much less in interest than we gain from the subsidies so it works out for us now as we are both on ACA plans.

We also use an HSA and have a couple of small businesses with expenses that help lower our taxable income.

Great idea on the HELOC withdrawals.