Dealing with Obamacare Hypothetical

Taxpayer: I'm $6k over the limit for Obamacare (4xFPL) for 2019 and owe $5k back for excess premium tax credits. (MFJ)
basisschedule: TP, you have no retirement plan, what if you contribute $6k to your IRA?
TP: I have $3.52 in my bank account.
basis: If you can scrape together $6k by 4/15 for your IRA you won't have to scrape together $5k for Uncle Sam.
TP: This sucks.


Question for the board...
Would it be an acceptable strategy to propose that the TP might beg/borrow/steal $6k for TP's 2019 IRA and leave the funds long enough to satisfy the financial institution, then take a 2020 distribution to repay whomever you begged/borrowed/stole from? And would you need the holding period to be longer than 60 days to avoid "undoing" the 2019 contribution?

Maths:
6,000- to 2019 IRA
5,000+ 2019 tax savings
100- IRA fees
5,900+ early distribution
1,300- 2020 tax ramifications on early distribution (10% penalty + 12% bracket)

3,700 net savings plus the benefit of kicking the can down the road in a tough time.

That is such a lovely, creative idea. I don't know if there is anything that forbids it, but really, hats off for the creativity.

5,000+ 2019 PTC tax savings + 720 federal tax savings at 12% + xxx state tax savings at x% rate

5,000+ 2019 PTC tax savings + 720 federal tax savings at 12% + xxx state tax savings at x% rate

Good point but no state income tax in this hypothetical state.

We have done this in the past. You are putting your neck out but if you are comfortable I believe it is ok. Messes up future savers credit for a few years.

What I always worry about when we get folks just under the wire in this scenario is what happens if they forgot to give us some info - perhaps $500 of unemployment or 1099 misc? They get a CP 2000 saying they forgot to report $500 and now owe 5k!

We sometime actually get them to sign a CYA statement but as often as not don't bother.