I've asked this question before, but I have figured out the answer (for me at least and you may not be the same)
I plan sell everything and stop working next year. All I will have is cash savings and 401k savings. I'll be 56 and my wife 55. Since I will be doing this in Sept that first 3 months we will pay the full price
of an ACA plan for health care
because our income
will not qualify for a subsidy.
If you don't know you need a certain amount of income
to get a subsidy or you are going to pay full price
. So if a couple makes $17500 a year they get no subsidy, but if they make $22000/yr they do.
I've figured out the answer and will post it (BTW turns out this is a typical forum)
We withdraw $22000 from our 401ks, which counts as income (don't think I will pay a penalty but even if I do it is a savings).
This turns a ACA silver plan from a cost of $589 to $31 month. This saves $6,696/yr on the costs of the ACA plan. But I pay tax on it and after standard exemptions the tax is $1408 (2014 tables). So the ACA plan in basic terms (for all the super accountants that are going to say buts) cost $31x12 months plus $1408 income taxes
= $1780 or $148.33/mo. This compares to to having less income and paying the $589/mo so you just saved $440.67/mo
And you could also just put the withdrawal money
into a Roth IRA. But it doesn't really matter if I spend the money
withdraw from the 401k instead of using cash savings for my living/cruising costs, or put it into Roth IRA for growth and later tax free withdraw far as this topic is concerned.
Thanks to those who helped in the question!!!