Thanks for the great video, Ari. You and James are the dynamic duo of KZread financial content creators!

@earlyretirementari

Ай бұрын

Our pleasure!

Ari, good content BUT, I was looking forward to a couple case studies to DETAIL the financial math ROI on ACA subsidy vs. say RMD minimization but skipping the ACA subsidy - ie. Financial cost benefit analysis of creating lower income for a subsidy vs. Minimizimg RMD income and skippimg the subsidy.

@earlyretirementari

2 ай бұрын

We have more content coming on this! Thank you so much for your patience :)

@Move_Health

2 ай бұрын

Hey Paul! We'd love to connect and run scenarios specific to your needs. This comparison is a highly customized process!

@paulscheuer9455

2 ай бұрын

Great!

@paulscheuer9455

2 ай бұрын

​@@Move_HealthI have sent my details to you

@paulscheuer9455

2 ай бұрын

​@@earlyretirementarifor the next video, please go into the details with multiple examples of cost benefit analysis of "saving now" (ACA subsidies) vs. no subsidies due to ROTH conversions instead to lower large RMDs (saving later)

Thanks Ari for the video, it was very helpful!

@earlyretirementari

2 ай бұрын

I'm so glad!

Waiting for information like this. Age 59, on aca. Luckily, we have a nice amount in a brokerage account. Withdrawing 3k a month and 2k a month from traditional IRA to live on. We contribute to HSA max and get 10k a year deduction for contributions. We pay zero dollars for health insurance. We show income at around 35k with 60k withdrawals.

@KK-ix9mf

6 күн бұрын

Good info. Can I ask how income becomes 35K w/ 60K withdraw? 24K from IRA + Capital gain tax for 36K from stock - 10K HSA max contribution? I'm thinking the same strategy, but need to do Roth conversion while want to take advantage of ACA's subsidy. Thanks.

@patrickoconnor2547

5 күн бұрын

@@KK-ix9mf remember standard deduction $29,200

@patrickoconnor2547

5 күн бұрын

@@KK-ix9mf remember standard deduction $29,200. Subtract from 60k

Last year I still had a couple months of W2 income so I held off on Roth conversions to save with ACA. I am starting Roth conversions this year but I will hold back a bit to get a decent ACA subsidy. Thanks for the video.

@Davek111

2 ай бұрын

Excellent move!!! The money you save today on those premiums is worth far more than the same $ amounts when you hit 70.

@earlyretirementari

Ай бұрын

Good stuff and Glad you enjoy it!

We had this issue, I still have a small amount of PT income of about $20k. So we contributed to Roth and HSA and still qualified for $14k in credits

@Davek111

2 ай бұрын

Well done!!! You should have no problem keeping yourself at the absolute 150% FPL and get the most from the premium subsidy.

@randolphh8005

2 ай бұрын

@@Davek111 yes, and many don’t realize that in many counties HSA eligible plans are on the marketplace, so if you have the cash and a little income you can contribute close to $25k to Roths and HSA as a couple while still getting substantial credits to help make it all work. This year is the end of credits and HSA for me since I turn 65 next month, but I can still fund our Roth IRA’s with the small amount of earned income. Obviously funding a regular IRA would be stupid at our current tax rate of 10%-12%.

If one has a High Deductible ACA plan, can qualified $s (IRA / 401K / 403b) be moved to an HSA (ideally the annual max.) without the the move creating a taxible event that would count against your annual subsidy?

Is there an ACA PTC formula that can be spreadsheeted to calc PTC vs Roth conversion taxes?

@randolphh8005

2 ай бұрын

Don’t know about a formula, but there is a chart published by the IRS that tells you the percent subsidy based on income. Just look up the IRS instructions for filling out the PTC form. It depends on family size and percent of poverty level, but it looks like it is a progressive chart, so a simple formula won’t work.

Great episode, but I was hoping you'd cover if it's OK/advisable to withdraw from Roth IRA for living expenses to help keep MAGA low enough to qualify for ACA subsidies. Thanks

@earlyretirementari

2 ай бұрын

It’s okay, but not optimal in most cases. Let the Roth IRA grow tax-free!

@heidikamrath1951

2 ай бұрын

Did you mean MAGI?

I currently put in money to my 401k traditional. I’m wondering if there is a certain point that makes sense to do Roth 401k (which my employer offers and still matches) instead to avoid conversions later. I’m married and if we keep going by the time we retire we would have a couple million in each of our traditional 401k.

@randolphh8005

2 ай бұрын

If you can get a Roth match, you want to be doing at least some Roth contributions. How much is harder to say.

@dathat555

Ай бұрын

I am maxing out my 401k pre tax (with employer match) AND 401k Roth. At my current tax rate it does not make sense for me to not take the 401k tax deferral. I will try to reduce that balance with Roth conversions after I retire at a (hopefully) lower rate. Figuring out how much to convert versus taking an ACA subsidy is my next challenge.

You guys failed!!! It would have taken 5 mins to put together 2 whiteboard examples.... One showing a low incomer driver vs a high income person. I'm 60 and managing a $2M+ portfolio, and I have my income from interest and capital gains far under the 150% FPL. I'm receiving nearly $24k in free premiums and qualify for the highest Silver plan on the ACA. So I have no deductibles with just $5 and $10 copays for any services. $24,000!!!

@paulscheuer9455

2 ай бұрын

Wow! Congrats! Applogies im advance if this is too personal, but approximately how much monthly income dobyou ceate from that $2M+ portfolio? Do you find that you have to supplement your income from savings and dividends with ROTH $s to stay near 150% of FPL?

@dathat555

Ай бұрын

Congrats on the $2M portfolio. Are Roth conversions part of your picture? Agree on the need for some whiteboard examples.