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nub340
New Member

Are Taxable Roth IRA Conversions Counted as Income for Covered California Benefit Calculation?

I'm recently self-employed and have very little income this year. Well under the $20,121 minimum required to qualify for Covered CA benefits in 2023. However, I do not wish to lose my current Covered CA health insurance plan and be forced to go on Medi-Cal. 

 

To make it easy, let's say by the end of the year I earn $10,000 in regular self-employment income. Could I convert $11,000 of my IRA to a Roth IRA in order to generate $21,000 of total income and therefore qualify for Covered CA and keep my current plan?

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3 Replies

Are Taxable Roth IRA Conversions Counted as Income for Covered California Benefit Calculation?

Are Taxable Roth IRA Conversions Counted as Income for Covered California Benefit Calculation?

"Retirement income" counts for Covered CA.  Since a Roth conversion is a withdrawal from an IRA, it likely counts as income for this purpose.

https://www.coveredca.com/support/financial-help/what-counts-as-income/

dmertz
Level 15

Are Taxable Roth IRA Conversions Counted as Income for Covered California Benefit Calculation?

I believe that this is based on the MAGI as defined in the Affordable Care Act.  As indicated in the reference that Opus 17 provided, the ACA MAGI includes the taxable amount of a Roth conversion (retirement income).

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