First pensions are not earned income. second you are wrong - ACA premiums are based on household income not earned income. third, you husband should request a direct rollover. with a direct rollover there is no withholding and the amount isn't taxable. if he receives the distribution in cash, there will likely be withholding taxes, so he will have less cash to deposit into the IRA. that amount will be taxable unless its made up with funds from either of you. if under 59/12 any taxable amount will be subject to 10% early withdrawal penalties
