Personal Investments • IRA withdrwal and contribution: impact on taxes, MAGI, ACA subsidy

Esteemed Bogledheads:

Thanks to the experts on this, I have discovered so much useful information.

I had a question on IRA withdrawals and contributions in the same tax year. As you know, this has implications for taxes, MAGI, ACA subsidy.

For context, I am over 60. Between my wife and I, we have 4 IRAs: a SEP IRA, a Rollover IRA, and two Traditional IRAS. Towards the end of the year, I intent to withdraw 2K from the SEP IRA and have 75% withheld for taxes. Later, I would contribute 2K to one of the IRAs. NOTE: THIS WOULD NOT BE AN INDIRECT ROLLOVER

Questions:
1.Is the impact on taxes, MAGI, ACA subsidy essentially a wash?
2. Does it matter to which IRA I contribute the 2 K -- my own SEP IRA or my Traditional IRA or my wife's Traditional IRA?

Thanks for your answers.

Sbsuocbw

Statistics: Posted by Sbsuocbw — Tue Aug 13, 2024 12:26 pm — Replies 0 — Views 6

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