I want to lower my AGI and taxes as much as possible, but due to ongoing divorce related legal fees and childcare expenses, I need most of my income. I anticipate needing about $20,000 this year for legal fees and $12,000 for childcare. I will gross about 90k this year, and I cannot count on receiving any child support at this time, although I will get a ton of back child support when my divorce is eventually settled (hopefully by the end of this year). Also, starting in June, I will be buying health insurance through Obamacare or whatever it's replaced with for me and my 2 kids. Currently I expect that to cost $700 a month with no subsidy.
I have about $30,000 in savings accounts and $120,000 in a Roth IRA. I also have about $300,000 in my 401(k), but I'm unwilling to touch that unless there is a dire emergency. Would I be crazy to max out my 401(k) and HSA to lower my taxable income? This will mean I'll have to spend at least $20,000 of my savings for my crazy legal fees. I like having the $30,000 as an emergency fund since I'm a single parent, but I should be able to withdraw my Roth contributions in an emergency.
If I lower my AGI, I'll be able to benefit from any health insurance subsidies and the child tax credit. I'm just a little nervous to draw down my savings and I'm wondering if anyone sees any holes in this plan.