ACA Minimum Income Requirements and IRA Withdrawals
The Affordable Care Act (ACA) includes income thresholds that determine eligibility for health insurance subsidies. These thresholds are based on the Modified Adjusted Gross Income (MAGI), which is generally your income before certain deductions and exemptions.
If you have no other income for the year, withdrawing the minimum income requirements for the ACA from a rollover IRA may qualify you for those credits. This is because IRA withdrawals are included in MAGI, just like regular income.
How IRA Withdrawals Affect MAGI
IRA withdrawals are considered taxable income, which means they are added to your MAGI. However, there are some exceptions to this rule. For example, qualified withdrawals from a Roth IRA are not included in MAGI.
Minimum Income Requirements for ACA
The minimum income requirements for the ACA vary depending on the year and the number of people in your household. For 2023, the minimum income requirements are as follows:
Single: $13,890
Couple: $27,780
Family of 3: $37,650
Family of 4: $47,520
Qualifying for ACA Credits
If your MAGI is below the minimum income requirements, you may qualify for ACA credits. These credits can help you lower the cost of your health insurance premiums.
Seeking Professional Help
Determining your ACA eligibility and maximizing your credits can be complex. If you have questions or need assistance, it’s recommended to consult with a licensed health insurance agent. They can help you assess your situation and find the best plan for your needs.
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