How Collecting Social Security Early Can Impact Your Affordable Care Act Subsidy #302
Release Date: 04/21/2026
5 Tax Mistakes To Avoid In Your Initial Retirement Years, #323
Retire With Ryan
As you transition into retirement, tax planning might not be at the top of your to-do list—but overlooking it can lead to costly mistakes. This week, I break down the five biggest tax pitfalls new retirees face, from unexpected taxes on Social Security benefits to costly Medicare premium surcharges and missed Roth conversion opportunities. I’m also sharing a few of my favorite strategies to avoid unnecessary state taxes and manage your retirement distributions with confidence. You will want to hear this episode if you are interested in... [01:45] Without planning, your risk...
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5 Year Roth IRA Rule People Get Wrong, #322
Retire With Ryan
Roth IRAs are a powerful retirement tool, much loved for their promise of tax-free growth and withdrawals. But embedded in the rules for Roth IRAs are two little-understood 5-year rules. Misunderstanding these can trip up even savvy savers, potentially exposing your hard-earned gains to taxes and early withdrawal penalties. This week I’m giving you an expert breakdown to clarify how the rule works and bust some common misconceptions. You will want to hear this episode if you are interested in... [01:13] Tax-deferred growth and conditions for tax-free distributions [05:39] Taxes...
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4 Best Options To Pay For Long-Term Care, #321
Retire With Ryan
Long-term care coverage is an essential, yet often misunderstood, aspect of retirement planning in the United States. Although many people will require some form of long-term care as they age, most are unprepared for the high costs and limited coverage options available. On the show this week, I’m debunking common myths like the notion that Medicare will fully cover all long-term care costs and taking a deep dive into the four main ways retirees can pay for these expenses. You will want to hear this episode if you are interested in... 00:00 Understanding the options for...
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Are Bonds Still A Good Investment For Your Retirement Portfolio, #320
Retire With Ryan
On the show this week, I’m helping you understand why bond prices have been dropping, what actions investors should take, and whether bonds still have a place in a retirement portfolio. I discuss the different types of bonds and how interest rates impact bond prices. I also dig into the importance of maintaining a diversified portfolio and the role bonds can play in reducing overall volatility during retirement. You will want to hear this episode if you are interested in... [02:03] Types of Bonds and issuers [03:21] Risks of investing in junk bonds [04:39] Why have bond prices...
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Top 5 Reasons Retirees Run Out Of Money, #319
Retire With Ryan
Retirement is often imagined as the reward after decades of hard work—a time for travel, relaxation, and quality time with loved ones. But for many Americans, the anxiety of running out of money casts a long shadow over these golden years. Studies reveal that concerns about outliving savings are more prevalent than fears of dying prematurely. This week we’re discussing the five key reasons retirees run out of money and sharing practical steps you can take to secure your financial future. You will want to hear this episode if you are interested in... [02:16] Even high-income...
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What Order Should I Start Withdrawing From My Investment Accounts In Retirement, #318
Retire With Ryan
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3 Ways To Make The Most of Your Restricted Stock Units, #317
Retire With Ryan
On the show this week, I answer a listener question about restricted stock units, or RSUs—what they are, how they're taxed, and the best strategies for managing them as they vest. I'll take an in-depth look at different types of vesting schedules, tax implications, and the practical choices you have when your RSUs become available. This episode is all about giving you clear guidance to help you make informed decisions about RSUs and making sure your retirement strategy is on the right financial track. You will want to hear this episode if you are interested in... 00:00 Explanation of...
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Accessing Your 401k Early With The Rule of 55, #316
Retire With Ryan
For many Americans, the idea of retiring before age 59 and a half often seems out of reach, particularly when the bulk of their savings sits in an employer-sponsored 401(k) or 403(b) plan. Traditionally, the tax code penalizes early withdrawals from these accounts. However, the Rule of 55 could open the door to a more flexible, penalty-free early retirement. On this episode, I’ll share more about this IRS provision, who qualifies, how to use it wisely, and potential hazards to avoid. You will want to hear this episode if you are interested in... [00:00] Overview of the Rule of 55 and...
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How To Avoid Taxes On The Sale Of Your Primary Residence, #315
Retire With Ryan
For many retirees, their home isn't just a place of comfort, it’s one of the largest assets on their balance sheet. However, beyond the emotional value and the years of accumulated equity, there's an often-overlooked reality: selling your primary residence can bring an unexpected tax bill. If you’re contemplating a sale or want to ensure you’re planning wisely, understanding the IRS’s primary residence capital gains exclusion is essential. On the show this week, I break down what this exclusion means, who qualifies, how to maximize its benefits, and the critical planning steps to avoid...
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Give Your Child or Grandchild A Head Start On Retirement With a Trump Account, #314
Retire With Ryan
On July 4, 2026, a groundbreaking opportunity opened for parents and guardians aiming to give their children a head start on their financial journey: Trump Accounts. Created as part of the OBBA Tax Act (“One Big Beautiful Bill” Tax Act) of 2025, these tax-advantaged investment vehicles provide a unique way to grow wealth for minors. In this episode, I break down what Trump Accounts are, who’s eligible for generous bonuses, how to get started, and how they compare to other common savings options like 529 plans. You will want to hear this episode if you are interested in... [00:00]...
info_outlineFor many Americans approaching retirement, financial planning means more than just maximizing savings and deciding when to claim Social Security. If you’re not yet eligible for Medicare and rely on health coverage through the Affordable Care Act (ACA), your Social Security claiming decision at age 62 could have a dramatic effect on your insurance costs. On the show this week, I explore the nuances of how your income, and especially the timing of your Social Security benefits, can impact your eligibility for ACA premium tax credits—and what you can do to avoid costly surprises.
You will want to hear this episode if you are interested in...
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[00:00] Retirement income and tax planning
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[03:35] Understanding ACA tax credits
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[07:44] Managing income for ACA tax credits
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[10:38] Social Security and tax calculations
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[14:57] Strategies for tax-free income access
Are ACA Premium Tax Credits, and Why Do They Matter?
Premium tax credits, often referred to as ACA subsidies, are financial incentives designed to make health insurance more affordable for individuals and families who purchase coverage through healthcare.gov or a state exchange. These credits are contingent on your income, specifically your household’s Modified Adjusted Gross Income (MAGI).
For 2026, a single person can qualify for ACA subsidies if their MAGI is between 100% and 400% of the federal poverty level (FPL)—$62,600 in 2026 for an individual, and $84,600 for a couple. If you earn even $1 above this ceiling, you lose your entire premium subsidy—a phenomenon known as the “subsidy cliff”. With millions of Americans currently receiving subsidies, understanding how your retirement income decisions could threaten this benefit is essential for sound financial planning.
How Income Is Calculated for ACA Subsidies
Not all income is created equal when it comes to ACA subsidies. The government uses your MAGI, which is your Adjusted Gross Income (AGI)—the number found on your tax return—plus certain items like tax-exempt bond interest and non-taxable Social Security benefits. This includes:
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Wages and self-employment income
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Social Security benefits (both taxable and non-taxable portions)
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Retirement account distributions (except Roth IRAs or Roth 401ks)
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Rental, interest, and dividend income
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Capital gains
Additionally, some deductions, like contributions to IRAs, HSAs, and student loan interest, can reduce your AGI, and thereby your MAGI, giving you potential tools for staying below the subsidy cliff.
The Social Security Timing Dilemma
Collecting Social Security early at age 62 may sound appealing, but it comes with strings attached for ACA recipients. A critical point is that not all of your Social Security benefits are necessarily taxable. However, when calculating MAGI for ACA purposes, you must add back even the non-taxable portion, which can push your income above the subsidy threshold. For example, if you take a modest IRA distribution and also begin Social Security, the cumulative MAGI could surprise you.
Strategies to Preserve Your ACA Subsidy
Given the high stakes, careful income planning is essential for anyone under 65 not covered by Medicare and receiving an ACA subsidy. You could delay Social Security, as waiting to claim benefits may help keep your income lower. You could also draw from Roth accounts or savings, withdrawals from Roth IRAs or 401(k)s—provided they’re qualified—don’t count as income. Likewise, using savings or HSA reimbursements has no impact on MAGI. IRA, HSA, and 401(k) contributions can reduce your MAGI, especially if you miscalculated and need to lower your income late in the year. The most important thing to do is plan withdrawals: Time your IRA or 401(k) distributions and capital gains so they don’t coincide with years when you’re dependent on ACA subsidies.
Avoiding the “Subsidy Cliff” Surprise
Perhaps the most important lesson is to monitor your income projections carefully throughout the year and to report your expected MAGI precisely when applying for coverage. Exceeding the threshold by even a small amount can cause you to lose your subsidy, resulting in thousands of dollars in unexpected premium costs come tax time.
Retirement planning requires a big-picture approach that balances income sources, tax implications, and healthcare costs. If you’re considering Social Security at 62 and not yet on Medicare, pay close attention to how your income choices will affect your ACA subsidy—because when it comes to the “subsidy cliff,” every dollar counts.
Resources Mentioned
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