Is a roth conversion ladder worth the complexity?

[captainAaron]

Trying to figure out the optimal income strategy for ACA subsidies until Medicare at 65. My brother's current plan is to live off taxable account withdrawals to keep AGI low and maximize premium tax credits. Problem is he has about $800K in traditional IRA that he'll eventually need to tap, and the RMDs at 73 are going to push him into a higher bracket.
so on his behalf I've been reading about roth conversion ladders where you convert just enough each year to stay under the 400% FPL threshold while still qualifying for subsidies. The math seems to work but adds significant complexity.
Is the tax savings and healthcare subsidy worth the annual planning headache, or should we just keep it simple and accept higher ACA premiums?

 

[Reece_James]

How old is he now and what state is he in? that affects the subsidy cliff threshold. The conversion ladder strategy is absolutely worth it in your brother's situation because with $800K in traditional IRA, those RMDs at 73 are going to be brutal and he'll lose ACA subsidies anyway once they kick in so him converting gradually now while he's under 65 lets him control his tax bracket amongst others
Make sure he's paying the conversion taxes from the taxable account, not the IRA itself