ACA Subsidies or Roth Conversions. What Is Better for Pension Holders?

Work with me: https://farerfinancial.com/get-startedIf you have a pension and you're retiring before 65, you've probably heard two things that sound like they're in direct conflict: protect your ACA subsidy to keep healthcare costs low, and do Roth conversions now while taxes are on sale. For most pension holders, doing one seems to blow up the other — so they freeze, protect the subsidy, skip the conversions, and quietly build a larger tax problem without realizing it.This episode is about why that's a sequencing decision, not an either/or decision — and why your pension changes the math in a way almost nobody talks about.Most ACA subsidy advice assumes you're starting from zero income in retirement. You're not. Your pension puts income into your MAGI before you do anything else. That changes what the ACA window actually looks like for you, how much room you have for conversions before hitting the cliff, and what the real cost of doing nothing on conversions actually is while the subsidy feels comfortable.In this episode, Cole walks through how ACA subsidies work for pension holders specifically, the three paths available in the pre-Medicare window and what each one actually costs, why the Medicare window between 65 and RMD age is where the real conversion work happens, and the questions every pension holder should be asking before deciding how to sequence this.Topics covered:How ACA marketplace subsidies work and what the 2026 cliff means for early retireesWhy your pension creates a mandatory MAGI floor that changes the subsidy calculation entirelyThe tax problem building quietly while subsidy protection feels like the right callThree paths through the pre-Medicare window — full subsidy protection, aggressive conversions, and threading the needleWhy the Medicare window between 65 and RMD age is the most underutilized stretch in pension holder retirement planningIRMAA considerations in both the ACA years and the Medicare windowThe six questions every pension holder should be asking about their specific conversion pictureThis episode is for informational and educational purposes only and does not constitute personalized investment, tax, legal, or insurance advice. Viewing this content does not create an advisory relationship. The strategies and examples discussed are hypothetical and for illustrative purposes only. Always consult a qualified professional regarding your specific situation.Farer Financial LLC is a Registered Investment Adviser registered with the Washington State Department of Financial Institutions.