need Input on Future Scenario

[bmjohnson35]

Planning to go FIRE end of March 2020.  We are targeting a maximum MAGI of $32k during the year. 

When I add up my forecasted AGI from 3 months of income and dividends for the year, I'm expecting around $30k in MAGI. 

I can't get a straight answer from HR whether or not there will be a annual bonus payout around May 2020 for 2019 calendar year performance period.

In the event I do receive a bonus that puts me over target, can I contribute up to $6000 into IRA's for married couple to reduce my MAGI below $32k target?

Thanks,
BJ

[terran]

As long as either spouse has enough earned income in the year for which you want to make a contribution, then you can both contribute to an IRA for a total of $12k.

There are different Modified Adjusted Gross Income's used for different purposes which add various things (sometimes IRA contributions) back to AGI to arrive at the relevant MAGI. What MAGI are you referring to?

If you weren't already planning to, you could consider contributing the max to any workplace retirement plans, which I think reduce all forms of MAGI. Then in December once you know what you have earned and what your dividends will be you could convert from traditional to Roth to bring your income up to the desired level.

[bmjohnson35]

Our $32k MAGI is for ACA subsidies.  I will already be contributing to 401k up until the end of employment.  My spouse does not work, so he has no income.  My goal is to make as much income from my job as possible, without exceeding $32k target.  I am already factoring in expected dividends.  I'm trying to avoid using little or no savings in 2020 to cover our living expenses.

BJ