Author Topic: Spiked or smoooooth income for ACA?  (Read 456 times)

theupperwestmike

  • Newbie
  • *
  • Posts: 9
    • View Profile
Spiked or smoooooth income for ACA?
« on: May 04, 2022, 01:26:28 PM »
https://www.gocurrycracker.com/go-curry-cracker-2021-taxes/

Brilliant stuff as usual. I admire your creativity!

One of your moves got me thinking: your tax gain harvesting of $150k to ease the next few years of income for ACA (and other benefits). Assuming tax and ACA laws are unchanged, do you think you'll repeat something like that every few years - where you have one low/no ACA subsidy year followed by two or three generous subsidy years - or do you think that once you've run out of that full basis $150k, you will sell/convert a little each year going forward?

If not for your household situation, can you think of an early retiree household type where a spiked income pattern makes a lot of sense?

gocurrycracker

  • Administrator
  • Sr. Member
  • *****
  • Posts: 411
  • I live here.
    • View Profile
    • Retire Early. Travel the World.
Re: Spiked or smoooooth income for ACA?
« Reply #1 on: May 05, 2022, 01:49:02 PM »
Thanks Mike

I don't plan to do this ever again. It was a 1-time thing as we transitioned from a low-tax to a not-low-tax environment.
Details here: https://www.gocurrycracker.com/harvesting-massive-capital-gains/

I'll be 48 this year, just 11.5 years away from unrestricted access to IRAs. Between this one-time $150k cap gain and debt (https://www.gocurrycracker.com/sweet-sweet-debt/) we shouldn't have any issues hitting 59.5 without big tax bills or ACA premiums.

If that weren't the case, the ACA tick tock can be a good approach as long as there are no underlying (high cost) health issues.
https://www.gocurrycracker.com/the-obamacare-tick-tock/

theupperwestmike

  • Newbie
  • *
  • Posts: 9
    • View Profile
Re: Spiked or smoooooth income for ACA?
« Reply #2 on: May 07, 2022, 02:33:49 PM »
Thanks!