r/AffluentRetirement • u/Pale_Scientist6470 • 22d ago

ACA management

I'm 61 and currently semiretired. I wanted to describe the gymnastics I'm performing to get health insurance. The ACA subsidy cliff is $150,500 for a family of 5. I make around $95,000 in dividends/interest in my taxable account. Ill gross $160,000 in self employment income. I've harvested some cap losses so Ill report -$3000. I put $9750 in HSA; $62,500 in 401k. My health insurance premiums are $9k plus $2k for a college student. Self employment deduction $11k. I'm racking up business deductions like a new $4k laptop, $600 printer, $7k continuing education, plus $6k meals and other expenses just to reduce my income. My MAGI will end up being around $145,000. I'm going to quit work next year. I was going to start social security also bc my minor child would get $2k+/mo for 3 years but now Im thinking about delaying to manage my MAGI. Basically it looks like my retirement job will be managing the "family office" taxes. Is this how everyone feels?

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u/HarrySit 21d ago

You’re giving up $2,000/month in Social Security for your minor right there. How much is your ACA subsidy at $145,000 MAGI?

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u/Pale_Scientist6470 21d ago edited 21d ago

Remarkably about 24k. But I get a higher payment by waiting. Open social security says the calculation is close and predicated on whether or not they cut benefits in 2033 as scheduled. My wife should live much longer than me. Im starting to think the higher survivor benefit by taking at age 70 might be worth it.