I’m planning a move to the US (FL) by the end of the year and initially will be without employer. I’d like to qualify for ACA subsidies, which means keeping MAGI relatively low.
My assets are currently in a taxable brokerage account in VOO generating dividends about $ 60k gross per year. The issue is that dividends alone push my MAGI close to the limit for ACA subsidy thresholds.
I’ll have a short period with no tax residency before coming to US, during which I can sell and repurchase assets and effectively reset capital gains.
I’m considering reallocating away from VOO into lower-dividend options (VUG or similar growth-oriented ETFs) to reduce ongoing taxable income. The idea would be to cover expenses by selling shares (principal / minimal gains) rather than receiving dividends that count toward MAGI. I’ve also seen iBonds mentioned as a potential tool.
I do not have any pre-tax accounts as I was never employed by US companies.
For those who’ve planned around ACA eligibility:
\- Does this general approach make sense?
\- Are there other asset types or strategies commonly used to keep MAGI low while remaining invested?
\- Anything else I should be concerned about or other practical considerations?
Appreciate any insights or real-world experience.