Does Having Assets Affect Your ACA Eligibility or Rates?

If you’re nearing retirement, you may be wondering about your health insurance options. Many people consider the health insurance marketplace, created by the Affordable Care Act (ACA), to be a good choice for early retirees. But what if you have assets, like a retirement account or a house? Will that affect your eligibility or rates for ACA coverage?

The answer is no. Assets are not considered when determining ACA eligibility or subsidy amounts. The only factor that matters is your Modified Adjusted Gross Income (MAGI).

Your MAGI is your adjusted gross income, plus certain other income that is excluded from your federal income taxes. If you are not familiar with MAGI, it is calculated by using the IRS’s definition of AGI and adding certain types of untaxed income, such as:
Social Security benefits
Tax-exempt interest income
Foreign income excluded under special tax rules
Income from U.S. territories or possessions

Understanding MAGI can be particularly important when you need to estimate your income eligibility for ACA subsidies and tax credits.

So, if you have $1 million in assets, that will not affect your ability to get ACA coverage or the amount of your subsidy. However, it’s crucial to remember that things like 401k withdrawals and Roth IRA withdrawals can impact your MAGI and, therefore, your subsidy amount.

How to Estimate Your ACA Subsidy

If you’re eligible for ACA subsidies, the amount you receive will depend on your MAGI and household size. You can use the subsidy calculator to estimate your subsidy amount.

To estimate your subsidy, you will need to know your expected MAGI for the year. If you’re retiring at the end of the calendar year, your MAGI will be based on your income for the entire year. However, you can report your estimated income for the upcoming year when you apply for coverage.

If your income changes during the year, you may need to update your subsidy estimate. You can do this by logging into your account or calling the Marketplace Call Center.


If you’re nearing retirement, it’s critical to understand your health insurance options to make informed decisions about your coverage. The ACA marketplace can be a good option for early retirees, and if you qualify for subsidies, they can help make coverage more affordable.

If you have any further questions, seek assistance from a licensed health insurance agent to help you navigate your ACA coverage options.

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