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New Health Insurance Rules Just Created a Hack For Early Retirees
The 2026 health insurance subsidy cliff is back — and it could cost early retirees over $20,000 a year in unnecessary premiums. In this video, I break down the exact withdrawal strategy we used to drop a couple's health insurance premium from $28,000/year to under $5,000/year. Same plan. Same coverage. Same doctors.
If you're retiring before 65 and wondering how to afford ACA health insurance before Medicare, this is the most important number you need to understand: your MAGI (Modified Adjusted Gross Income). I'll show you what counts toward MAGI, what doesn't, and the hidden income traps that catch even careful planners off guard.
⏱️ Timestamps:
0:00 – $28,000 or $5,000: same plan, different strategy
1:30 – What is MAGI and why it controls your premium
3:15 – The 2026 subsidy cliff explained (KFF data)
4:30 – Tom & Susan's $3.4M early retirement problem
6:45 – The income you don't know you have (municipal bond trap)
8:00 – Why we paid full price in 2026 on purpose
9:15 – The blended withdrawal strategy ($140K spending, $60K MAGI)
10:45 – The trade-off: is it worth pulling from Roth early?
12:00 – What to do next
Resources:
Website: https://www.demarsfinancial.com/
Phone: (509) 536-9556
Schedule an introduction call with Taylor: https://bit.ly/demarspodcast
Check out Taylor's YouTube Channel: https://www.youtube.com/@TaylorMadeRetirement
Taylor's Newsletter: https://demars-financial-group.kit.com/827c64fe0e
Disclaimer: Since we don't know your specific situation, none of this information should be construed as tax, legal, financial, insurance, financial advice, or other advice and may be outdated or inaccurate. It is your responsibility to verify all information yourself. This content is prepared for entertainment purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Demars Financial Group, LLC or its members cannot be held liable for any use or misuse of this content. Advisory services offered through Demars Financial Group LLC, a Registered Investment Advisor. Demars Financial Group is not affiliated with LPL Financial.
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By Taylor Demars, CFP®The 2026 health insurance subsidy cliff is back — and it could cost early retirees over $20,000 a year in unnecessary premiums. In this video, I break down the exact withdrawal strategy we used to drop a couple's health insurance premium from $28,000/year to under $5,000/year. Same plan. Same coverage. Same doctors.
If you're retiring before 65 and wondering how to afford ACA health insurance before Medicare, this is the most important number you need to understand: your MAGI (Modified Adjusted Gross Income). I'll show you what counts toward MAGI, what doesn't, and the hidden income traps that catch even careful planners off guard.
⏱️ Timestamps:
0:00 – $28,000 or $5,000: same plan, different strategy
1:30 – What is MAGI and why it controls your premium
3:15 – The 2026 subsidy cliff explained (KFF data)
4:30 – Tom & Susan's $3.4M early retirement problem
6:45 – The income you don't know you have (municipal bond trap)
8:00 – Why we paid full price in 2026 on purpose
9:15 – The blended withdrawal strategy ($140K spending, $60K MAGI)
10:45 – The trade-off: is it worth pulling from Roth early?
12:00 – What to do next
Resources:
Website: https://www.demarsfinancial.com/
Phone: (509) 536-9556
Schedule an introduction call with Taylor: https://bit.ly/demarspodcast
Check out Taylor's YouTube Channel: https://www.youtube.com/@TaylorMadeRetirement
Taylor's Newsletter: https://demars-financial-group.kit.com/827c64fe0e
Disclaimer: Since we don't know your specific situation, none of this information should be construed as tax, legal, financial, insurance, financial advice, or other advice and may be outdated or inaccurate. It is your responsibility to verify all information yourself. This content is prepared for entertainment purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Demars Financial Group, LLC or its members cannot be held liable for any use or misuse of this content. Advisory services offered through Demars Financial Group LLC, a Registered Investment Advisor. Demars Financial Group is not affiliated with LPL Financial.