ACA MAGI explained: how to calculate and manage Modified Adjusted Gross Income (MAGI) for Affordable Care Act (ACA) subsidies—step-by-step, with a free MAGI calculator to lower premiums and maximize premium tax credits/subsidies.

In this episode, we calculate ACA MAGI step-by-step using a real early-retiree scenario and show you how to keep ACA premiums low by hitting your MAGI “sweet spot.”

You’ll learn:

• What counts in MAGI vs. what doesn’t.

• How to add back non-taxable Social Security benefits, tax-exempt interest, and excluded foreign income.

• How Roth conversions, IRA withdrawals, dividends, interest, and capital gains flow into AGI and then ACA MAGI.

• Form 8962 (reconciling with 1095-A) essentials.

• How to plan for the 2026 subsidy cliff as the 400% FPL cap returns.

🔗 Click here for the free MAGI Calculator Template (Microsoft Excel download). Use it to estimate your MAGI for ACA plans.

📊 Resources mentioned in this episode:

•  More information on Traditional IRA contribution limits and the ability to deduct them: Traditional IRA Contribution Limits for 2025 - NerdWallet


• IRS Publication 501: 2024 Publication 501


• 2025 FPL Levels based on household size: detailed-guidelines-2025.pdf


• Click here for the ACA Cost Estimator

🎧 Podcast episodes mentioned: 

This podcast episode where I talk about about using the ACA cost estimator and saw amazing results, including cost sharing reductions by controlling MAGI, titled: How Early Retirees Can Pay WAY Less for Health Insurance!

This podcast episode on how a taxable brokerage account can be a superhero in reducing MAGI for ACA, titled: The $12,900 Health Insurance Loophole for Early Retirees!

This podcast episode that goes into detail about the enhanced ACA subsidies likely expiring at the end of 2025, and the 400%FPL cliff returning in 2026, titled: Will ACA Subsidies Disappear After 2025? What You NEED to Know!

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DISCLAIMER: This podcast is for educational purposes only and reflects my personal experience and research. It is not financial, tax, legal, or investment advice. Always consult with qualified professionals before making major retirement or financial decisions. I am not responsible for any loss or damages resulting from reliance on this information.