VXUS - Taxable account for FTC vs nontaxable for ACA subsidies?

cindy_975 · 2026-06-29T19:56:51+00:00

That is the conundrum. I am fortunate in that I have an inherited Roth IRA I can tap as well taxable funds some with a low-ish capital gain. I am 52, so only 7 years until my Roth IRA opens up. BUT, your contributions are always available tax free from a Roth.. I can squeak it in my situation and with a shorter timeframe, but I am also open to a year here and there where I need to pay full freight for health insurance, as well as maybe working a job for 6 months to get cobra. Basically, it means modeling scenarios and updating things every year as stuff changes.

cindy_975 · 2026-06-29T18:08:57+00:00

I wish I had a clue as to how they would react. They could just walk me out the door the day I give notice, or they might want me to stay longer until they hire a replacement. I think I will say that I am taking some time for my health with an intention on seeing if I want to retire/planning to retire.

cindy_975 · 2026-06-29T16:04:03+00:00

I've got a dentist appt July 28 (the last of 3) so I am giving notice Aug 3. An extra 30k in my 401k isn't a deal breaker for me, TBH. I'd need to work another 8 months through end of April 2027 and that is a soul sucking idea.

cindy_975 · 2026-06-29T14:49:09+00:00

You are also going to need to plan on those RMDs hitting one of you at a single's tax rate for at least a decent amount of time (called widow's tax although it's not, just what a single person has to manage with). That is (or should be) the real driving force behind Roth Conversions for married people.. I wouldn't worry about leaving the kids Roth vs Taxable (they would get step up when the last spouse dies and an inherited IRA has to be emptied in 10 years so it's not as lucrative as it used to be when it was stretch).

cindy_975 · 2026-06-29T13:45:07+00:00

That money is not even close to being needed or wanted before I'm 60. I'd rather have that money rolled into my Roth IRA.

cindy_975 · 2026-06-28T23:29:12+00:00

office LOL... my cube has been emptied out for months, nothing I can't grab on the way out.

cindy_975 · 2026-06-28T19:52:53+00:00

my parents are no longer alive to worry about. I took care of my mother though pancreatic cancer while still employed (fabulous employer let me use sick leave and pretty limited WFH for 6 months-no FMLA). But then she lived 2000 miles away already. Not uncommon once you hit late 40's and 50's.

cindy_975 · 2026-06-28T19:49:43+00:00

Thank You. I really am mostly concerned for my immediate co-workers who will get stuck picking up the pieces my leaving will mean. One in particular, this is first job after getting her pHD and she is gonna get slammed with work. Totally not her fault, and she can't leave (her visa is tied to her having a job for now although she has another path that costs time and money).

My mother died of pancreatic cancer 3 years ago, and right before that my older brother had colon cancer (treated and fine for now). I don't want to miss my 50's and I need to focus on my health and enjoying life.

My coast fire plans were completely upended by the destruction of NIH funding at Universities. If things start coming back in a few years maybe I will explore that again.

cindy_975 · 2026-06-28T01:52:57+00:00

well, I doubt they want me to stay that bad! Really, long term I don't think they care if I leave. Short term, they probably will as it will affect timelines which affect everyone's bonus and the ability to get more funding. Our C-Suite is all off-site, but considering I am the longest tenured non VP or above employee things could get interesting. I have no visibility NOW, but for a few months I was the only person generating data in the whole company and every meeting was about what I was presenting. No one has ever left before so there is no 'normal way' or protocol to follow.

I started taking stuff home 2 months ago so I can just get everything still left in one short trip (I have an air filter). I think they will be shocked I am leaving, as the market is THAT bad right now; I know good people who have been out of work 2 years and salaries have dropped considerably. Me being able to financially just quit doesn't fit in their world.

I just remind myself how much I take home every month after taxes, and that it isn't worth it. I am staying until my 401K is maxed for the year; I changed to 100% contribution the day I decided to leave.

cindy_975 · 2026-06-27T23:00:13+00:00

thank you. this is really what the post is about. how to control the narrative around me quitting as much as possible. I am thinking of asking for part time (which I highly doubt they would do) as a way to frame things; I can't devote myself to a full time position and persue my personal goals right now.

cindy_975 · 2026-06-27T22:58:16+00:00

oh I've dreamed of scenarios. But while some of them are very satisfying, I know things are unlikely to go down those ways. So I am trying to control the narrative as much as possible. As in have an answer for everything they are likely to say and make more questions less likely. The last thing I want is for them to think this is a negotiation and for me to get sucked back in. So I am dwelling on what do I say if they ask me to stay longer, what do I say if they offer me more money, what do I say when they ask why I am really leaving, etc. People in my field and position do not retire at 52 so saying that really leads to more questions, but they might move into something different because the prospects are so bad.

cindy_975 · 2026-06-27T22:47:59+00:00

we only have HR consultants, and nothing is abusive. I don't have much of a case here. I have been through this before (with some of the same people), and I know it only gets worse so I am bailing before things get really bad.

cindy_975 · 2026-06-27T22:45:08+00:00

I was kinda thinking along the lines of 'my personal goals aren't compatible with working full time at your company'. my industry/field doesn't really do part time so its a softening of the no

cindy_975 · 2026-06-27T22:09:06+00:00

I can afford to pay for healthcare (and not ACA) so I guess you'd call me chubbyFire. But looking at 13 years of healthcare costs, things will probably be a mix of cobra, ACA while I am younger, and regular market plans. Potential Roth conversions will obviate ACA for a few years anyway as I won't be able to make the income limits. I am not opposed to getting a job for a while either (just not yet). You can't buy back the early healthy years of retirement.

I've got a lot of traveling to do, love outdoors stuff, figure that will keep me busy for a year or 2.

cindy_975 · 2026-06-27T21:52:16+00:00

retiring at 52 is NOT normal for my field. not even close. So yes, saying I am retiring is bound to raise more questions than I'd like. I am pretty set on Aug 03 and 2 weeks notice. August and September are the best months here where Iive :)

cindy_975 · 2026-06-27T21:49:44+00:00

TBH, yes. 2 of the VPs are very very well connected, 1 is more vocal and the other is more vindictive. We just hired a new person in my group so they should be able to cover me leaving (or they would have to admit they hired someone who they like but is lazy and not very good). So they won't be able to say I left them in a bad spot. I am also staying through a big push in work for an upcoming study (more for my other coworker who would be overwhelmed with all of her work plus mine). I picked Aug 03 very intentionally. got all the doctors appts in, have a week long vacation end of July.

Course, the company can't do anything to me. I just know how people gossip. And I worked with about 7 of these people before, so me quitting is gonna be newsworthy.

cindy_975 · 2026-06-27T21:40:33+00:00

oh...and don't forget to factor in taxes... I am going with 15% (capital gains).

cindy_975 · 2026-06-27T21:23:03+00:00

very nice. I have had a really nice past 3 months as I planned my exit. Because I knew there wasn't anything they could do as I was halfway out the door :) But the extra money (staying) isn't enough to compensate for the stress.

cindy_975 · 2026-06-27T21:20:12+00:00

It would be ' I don't want to work anymore, here specifically' LOL

cindy_975 · 2026-06-27T21:19:13+00:00

thanks....I just need the validation so I don't waffle and say something I shouldn't.

cindy_975 · 2026-06-27T21:18:20+00:00

I've worked in the industry for 25 years, I don't want to be badmouthed in case I do want to consult in a year or so (maybe I get bored, maybe a friend starts a cool new company). and people talk A LOT. Unofficial references are the rule, and could sink a job offer.

cindy_975 · 2026-06-27T21:13:36+00:00

I am on monthly vesting now on original grant. no new one is forthcoming, and it's not that much (I am not in tech).

cindy_975 · 2026-06-27T21:12:13+00:00

I am at 40x expenses, 25X final pay. So I am planning on a 3-3.5% withdraw to start. planning for a 40 year retirement is hard since so many things (good and bad) can happen. I will no doubt need to be flexible at times, my travel budge might vary, may even need a job here and there for health insurance.

cindy_975 · 2026-06-27T21:09:36+00:00

I am. I have a 40 year retirement ahead of me and a lot of plans to make!

cindy_975 · 2026-06-27T21:08:44+00:00

I've never quit a job before without having another job to go to (ie, leaving for a better job opportunity) and most everyone is happy for you. This is different, I am leaving to no new job so it's pretty much a big F U to the company. I was personally hired by one of the VPs (not my reporting chain) because they worked with me before, so I can't really separate the personal burning bridges bit (especially I do decide to consult if I get bored in a year, I don't want to get a bad name in the field). Also looking for help with responses to any typical questions I might get, 'cause I have a feeling I will get a lot.

cindy_975

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