Is Income from Investments Enough for ACA Coverage?

Imagine this: you’ve retired and are living off of your savings. You don’t have any “wages” coming in from an employer, but you still have income from your investments. Can this income qualify you for health insurance under the Affordable Care Act (ACA)?

The Answer

Yes! Income from investments, such as traditional IRA distributions and dividends, counts towards your income for the purposes of qualifying for ACA health insurance. This is great news for retirees, investors, and anyone else who does not have traditional employment income.

How Income is Calculated

When determining your eligibility for ACA health insurance, the government looks at your Modified Adjusted Gross Income (MAGI). MAGI is similar to your Adjusted Gross Income (AGI) for tax purposes, but it includes some additional income sources, such as tax-free interest and certain types of Social Security benefits.

What Investments Qualify

For ACA purposes, all types of investment income count towards your MAGI, including:

Capital gains
Rental income
Pension and annuity payments
IRA distributions

Important note: Roth IRA distributions are not taxable and therefore do not count towards your MAGI.

Using Investment Income to Qualify for ACA

If your only income is from investments, you can still qualify for ACA health insurance. Here’s how:

1. Calculate your MAGI: Add up all your income from investments and any other sources.
2. Compare your MAGI to the ACA income limits: The income limits for ACA eligibility change every year. For 2023, the income limit for individuals is $19,800. For families of four, the limit is $43,000.
3. Apply for ACA health insurance: If your MAGI is below the income limit, you can apply for ACA health insurance through or a licensed agent. You may qualify for premium subsidies to help lower your monthly costs.


Even if you don’t have traditional employment income, you can still qualify for ACA health insurance if you have income from investments. By using your investment income to calculate your MAGI, you can access affordable health coverage to protect yourself and your loved ones.

If you have any further questions, don’t hesitate to reach out to a licensed insurance agent who can help you navigate the ACA and find the right health plan for your needs.

Question? or Need a Free Quote?
Contact Us

Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *