72t/sepp on roth ira and ACA effects?

[DK]

I've always thought about the 72t as something you could do on tax deferred accounts like the tIRA, but can you do it on the roth as well? For some reason I thought you couldn't but honestly not sure where I got that from.....if so I'm assuming it would be tax free and penalty free? (I do understand tIRA is penalty free but is taxed utilizing the 72t).

Also since it is tax free would that not apply to AGI for where you fall on the ACA income spectrum? I know thinking about FIRE and handling the health insurance side of things seems tricky to keep income in a good spot but having a way to get at the roth (even in a small amount) could help out quite a bit.

[seattlecyclone]

I believe the Roth earnings would be taxed if withdrawn early under this plan, all you'd avoid is the 10% early withdrawal tax. You can take the contributions out for free without doing a 72(t) plan.

But yes, Roth withdrawals don't count toward your ACA MAGI when they aren't taxed.