My wife inherited a variable annuity… Eventually, when the money is withdrawn, it will be taxable. I am having difficulty sorting out whether or not it will affect my my ACA PTC. On the one hand, it appears that an inheritance does not affect the PTC… On the other hand, since it will be taxable,, it would appear that it should be added into the MAGI, which in turn, would impact our ACA eligibility. My accountant's opinion is -
"My understanding is this – when you inherited the asset ( the annuity ) that is not taxable and therefore not MAGI– BUT when you cash it in it becomes taxable income and then is part of MAGI. 2 different events !"
I would appreciate explanation & clarification.. THX !
