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Level 2

Solved

Does the amount you take out of your 401-K at work get added to the Modified Adjusted Gross Income?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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Best answer by dmertz

Assuming that you did not make any after-tax contributions to your 401(k), your entire 401(k) distribution adds to your AGI and is treated as ordinary income unless it is rolled over to another retirement account. This income is included in the MAGI used for determining eligibility for health insurance Premium Tax Credits (and any other any type of modified AGI, as far as I know).

dmertzAnswer

Level 15

Assuming that you did not make any after-tax contributions to your 401(k), your entire 401(k) distribution adds to your AGI and is treated as ordinary income unless it is rolled over to another retirement account. This income is included in the MAGI used for determining eligibility for health insurance Premium Tax Credits (and any other any type of modified AGI, as far as I know).

Level 15

Elective deferrals *to* your traditional 401(k) from your paycheck are not included in your AGI and therefore do not appear in your MAGI. They are excluded from the amount reported in box 1 of your W-2. They are not reported anywhere on your tax return as a deduction.

Elective deferrals to a Designated Roth Account in your 401(k) (a Roth 401(k)) do appear in your AGI and MAGI since they are not excluded from the amount in box 1 of your W-2.