Trying to calculate IRA withdrawal to finish the year

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rjsob58
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Joined: Thu Mar 14, 2013 10:50 am

Trying to calculate IRA withdrawal to finish the year

Post by rjsob58 » Thu Sep 13, 2018 10:20 am

I retired this year, well actually last year, but this is the 1st year I'm making withdrawals from my IRA. I'm trying to figure out the best withdrawal amount to minimize the tax impact, given the new tax laws, and also not have a negative impact on the ACA subsidies I receive. I've tracked my expenses for the last 20+ years so I know how much I need for the rest of the year, but I'm not sure if that will take me over a tax bracket or result in me having to repay some ACA subsidies. Is it time to get an accountant?

The numbers are as follows:
1) If a withdraw the $15k I need, it would put my income/withdrawal at $97,500 for the year. I have made the 3 estimated tax payments based on last year, when my income was higher.
2) My ACA subsidies are at 50%, but I seem to remember they include income from dependents and both my now 18 year old sons work part time which could total another $10k between them. They would be filing their own taxes but last year I remember having to include their income on the ACA part of the tax forms.
3) They also started college this semester and I've withdrawn tuition, housing, books and laptops from their 529s to cover those costs. The 529 withdrawals aren't income, right???
4) I've always itemized, but with the $24k standard deduction, I'm don't think itemizing will be better (mortgage interest and property taxes are the big items).
5) With the $15k withdrawal, I would have virtually no cash in the bank at the end of the year, so I'd need to make my first 2019 withdrawal at the beginning of January.

Taxcaster and others show a $2k-2500 refund. But I haven't found anything that show how much of if I would be liable to repay some of the ACA subsidies. Any help or pointers in the right direction would be appreciated.

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