Roth conversion ObamaCare question

[NoOneGetsIt]

Ok, I have some money in an IRA that my tax guy says I can pay the taxes and roll into a ROTH.

Does anyone know what 'income' is with OCare? Will money taken from an IRA count? Or is it just earned income....THAT can make a big difference in premiums

 

[MichaelB]

See this thread here http://www.early-retirement.org/forums/f28/aca-magi-and-roth-conversions-65781.html
You will see a few more threads discussing this if you use the search function.

 

[pb4uski]

Ok, I have some money in an IRA that my tax guy says I can pay the taxes and roll into a ROTH.

Does anyone know what 'income' is with OCare? Will money taken from an IRA count? Or is it just earned income....THAT can make a big difference in premiums

I think the short answer is yes. But, if you do it in 2013 it will only affect your provisional 2014 subsidy. The actual 2014 subsidy would be based on 2014 income and would not affect your ultimate 2014 subsidy (but there will be a timing difference).

If you do a Roth conversion in 2014 it will definitely affect your 2014 icnoem and therefore your 2014 subsidy.