H4 Solve for the Constraint
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Definition
Identify the binding constraint (cash, basis, MAGI, RMD age, insurable interest, remaining exemption) before optimizing.
H4 Solve for the Constraint in plain English
A stem offers beautiful Roth conversion arithmetic while MAGI is about to blow a subsidy, or a gift plan ignores remaining exemption. H4 Solve for the Constraint: identify the binding limit (cash, basis, MAGI, RMD age, insurable interest, remaining exemption) before optimizing. Correct math on the wrong variable is still wrong. If the answer optimizes an unconstrained dial while the real bottleneck sits elsewhere, discard it. Name the constraint out loud, then choose the move that respects it.
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