Retirement Income and the ACA Insurance Marketplace
The Affordable Care Act (ACA) has made it possible for more Americans to access affordable health insurance. However, understanding how your retirement income affects your eligibility for ACA coverage can be tricky.
Retirement Income and the ACA
Retirement income is considered taxable income by the Internal Revenue Service (IRS). When applying for ACA, you must report all of your income, including retirement income, to determine your eligibility for premium subsidies.
Understanding MAGI
Modified Adjusted Gross Income (MAGI) is the term used to calculate your income for the purpose of ACA eligibility. MAGI includes most sources of income, including retirement income, wages, and investment income.
How Retirement Income Affects ACA Eligibility
The amount of retirement income you have can affect your eligibility for premium subsidies. If your MAGI is above a certain threshold, you may not be eligible for subsidies. However, even if you do not qualify for subsidies, you may still be able to purchase ACA coverage.
Calculating Retirement Income
When applying for ACA coverage, you will need to calculate your retirement income. This includes any income you receive from Social Security, pensions, IRAs, or 401(k)s.
Getting Help
If you are unsure about how your retirement income affects your ACA eligibility, you can seek assistance from a licensed insurance agent. They can help you understand your options and find the best coverage for your needs.
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