Author Topic: MAGI for ACA and Investment Principle  (Read 419 times)

Loren Ver

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MAGI for ACA and Investment Principle
« on: October 02, 2018, 04:43:07 AM »
Hello you smart and patient community.

I have what I hope is an easy question or two, but I really need the confirmation.

DH and I need to keep out MAGI low for the first few years of retirement to qualify for the ACA sweet spot. 

We have some larger expenses we need to cover.  I wanted to pull money out of our taxable investments.  If I pull that money out of the principle, would it count towards our MAGI and there for impact our ACA subsidies?

I am almost sure the answer is no, but I just need the double check as the implications are huge. 

Also, since I have never done this before, if I want to pull out principle,  is this something I tell the investment company when I call them, or something I just track against all the paperwork I have kept from all my investment contributions?

Extra big thank you!

Loren

   

jim555

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Re: MAGI for ACA and Investment Principle
« Reply #1 on: October 02, 2018, 06:21:35 AM »
You bought XYZ at 80 and sold it for 100, your MAGI would increase 20 per share.  This is in an after tax account.

Loren Ver

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Re: MAGI for ACA and Investment Principle
« Reply #2 on: October 02, 2018, 06:35:53 AM »
Okay, I think. So, since you are buying shares and they are appreciating, there is no way to take out the 80 and leave the 20. 

Loren

jim555

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Re: MAGI for ACA and Investment Principle
« Reply #3 on: October 02, 2018, 06:43:18 AM »
Okay, I think. So, since you are buying shares and they are appreciating, there is no way to take out the 80 and leave the 20. 

Loren
No.  But you could specify lots.  Later lots may have lower gains while the old lots have large gains.  You sell the newer lots first.

Loren Ver

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Re: MAGI for ACA and Investment Principle
« Reply #4 on: October 02, 2018, 12:58:13 PM »
Thank you jim555, this helps a LOT!

LV