Hypothetical Health Care *ACA* Question

ownyourfuture

Thinks s/he gets paid by the post
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Jun 18, 2013
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John Doe is single & chooses ER @ age 59.5
He has to purchase his own healthcare insurance.
He has a pension of $3,000.00 per month.

His lifestyle requires around $4,000.00 per month, so he takes a distribution of $1,000.00 per month from his ROTH 401-k/IRA.

Since it's a ROTH, he will not have to pay taxes on the 12-k

Will the ROTH IRA/401-k income be counted according to the ACA (Affordable Care Act) when he's shopping for insurance & checking if he's eligible for any subsidies ?

If memory serves, the cut-off for a single person is around 45k
(a single person making 45-k or more per year isn't eligible for any subs)

Thanks in advance!
 
Last edited:
My understanding is that Roth distributions do not count as income for the purposes of ACA subsidies. Probably John Doe should check with his tax guy just to be sure.
 
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