BiggerPockets Money Podcast · Friday, July 3, 2026
Scott Trench explained how Modified Adjusted Gross Income (MAGI) impacts Affordable Care Act (ACA) subsidies, noting that a lower MAGI can lead to higher credits. He highlighted that maximizing these credits in a given year might conflict with Roth conversions, adding another layer of complexity to withdrawal planning.
“So if you are modified adjusted gross income is too high, if it goes over 400% of the federal poverty line, then you get zero affordable care act healthcare subsidies.”
“But what you may not be remembering or thinking through is that the lower your Mages, the higher those credits.”
“Maximizing credits this year may be more important than taking advantage of Roth conversions up to some tax bracket.”