Some important "trigger" levels for 2026

[The Cosmic Avenger]

Could you not do Roth withdrawal to limit income and keep the subsidy (I have no idea if ACA counts that).

That's one possibility, but our Roths are supposed to be one of the later things we use, and they're less than most of our other accounts. I just can't get my head around whether using them this year to keep our taxes low would mean we'd pay way more in taxes in some year in the future.

How about cashing in a CD or two - no tax impact.

No CDs. Our short term cash is in bonds and bond funds right now.

 

[Koolau]

That's one possibility, but our Roths are supposed to be one of the later things we use, and they're less than most of our other accounts. I just can't get my head around whether using them this year to keep our taxes low would mean we'd pay way more in taxes in some year in the future.

Right. Using Roths strategically to keep ACA-limits at bay may mean higher AGI/MAGI for something else later. BUT the concept should be considered at least.

It just gets very complicated when you're balancing off current taxes/ACA subsidies vs future taxes/IRMAA/NIIT etc.! I've changed my mind (slightly) on using Roths NOW - but strategically.

Best luck in threading the needle!