Z3Dreamer
Thinks s/he gets paid by the post
In 2014 and beyond taxable income is irrelevant for PPACA subsidies. Subsidies are only on OMAGI. So I should bunch income and deductions in 2013, even if I go above the 15% bracket, somewhat. Of course, I have to consider state taxes, effect on property taxes (none in my state) and AMT. I have tax software and know about 72t, the exceptions and the penalties for withdrawing Roth conversion money too soon.
I plan on taking SS early due to all those good reasons others have stated, but I will not draw enough to live on. I figure, between DW and myself we will draw $30,000 per year from SS. Will need another $45,000 to live on. I hope less, much less, but you know how it goes. Yes, I have detailed budgets based on actual.
And 97% of my savings are in IRA/401k, not Roth. Regular Roth distributions are not in the OMAGI formula so in 2013 I need to convert (to Roth) enough to live on in future years and still stay under the 400% FPL. Since I can pull out a rounded $60,000 a year from SS and IRA, I only need to worry about converting the difference between my annual needs ($75,000) and $60,000. So, I need to convert $15,000 times the number of years I plan on qualifying for PPACA.
Since we have coverage through DW's j*b and will have it until she RE's, I can spread this conversion over a few years to lower the brackets.
In my multi-year calculations, before I start taking SS early, I may want to look at trade offs between building up too much in IRAs (which will cause high RMDs) and delaying SS. In other words, will the numbers justify a delay in SS?
I know everything above has been covered in other posts but I wanted to pull it all together. Did I leave anything out?
I plan on taking SS early due to all those good reasons others have stated, but I will not draw enough to live on. I figure, between DW and myself we will draw $30,000 per year from SS. Will need another $45,000 to live on. I hope less, much less, but you know how it goes. Yes, I have detailed budgets based on actual.
And 97% of my savings are in IRA/401k, not Roth. Regular Roth distributions are not in the OMAGI formula so in 2013 I need to convert (to Roth) enough to live on in future years and still stay under the 400% FPL. Since I can pull out a rounded $60,000 a year from SS and IRA, I only need to worry about converting the difference between my annual needs ($75,000) and $60,000. So, I need to convert $15,000 times the number of years I plan on qualifying for PPACA.
Since we have coverage through DW's j*b and will have it until she RE's, I can spread this conversion over a few years to lower the brackets.
In my multi-year calculations, before I start taking SS early, I may want to look at trade offs between building up too much in IRAs (which will cause high RMDs) and delaying SS. In other words, will the numbers justify a delay in SS?
I know everything above has been covered in other posts but I wanted to pull it all together. Did I leave anything out?