Ok investment scientists, let's optimize this one:
Quit job to start own business. Purchased health insurance through the exchange. Price is based directly on projected income for the year. Who knows what that will be?
Have old 401k and decided to roll it into a self directed ROTH IRA and pay the taxes on it this year.
Any idea if this will be taxed as earned income (need to know due to ACA Federal Health Insurance Exchange)?
If I "earn" more than $48,000 + this year, I will have to repay premium credits at tax time. IF the 401k roll over counts as earned income, this will change things dramatically?
Anyone know the answer to this?
Should I roll over into something else? Non-Roth? Self Directed Roth 401k? Any tax magic I need to preform?