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Level 1
posted Oct 22, 2025 11:17:04 AM

Taxes on ROTH IRA

I am currently enrolled in the marketplace for health insurance. If I withdraw funds from my Roth IRA, will it be considered part of my total annual income and potentially increase my taxable income?

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1 Best answer
Employee Tax Expert
Oct 22, 2025 11:59:31 AM

Retirement income is generally considered in the calculation used by the marketplace for health insurance.

If it's a qualified Roth distribution, it shouldn't increase your modified adjusted gross income, which is what the marketplace uses.  However, if you have to repay part of the Advance Premium Tax Credit, that will increase your tax.

 

 

Hope this helps!

Cindy

1 Replies
Employee Tax Expert
Oct 22, 2025 11:59:31 AM

Retirement income is generally considered in the calculation used by the marketplace for health insurance.

If it's a qualified Roth distribution, it shouldn't increase your modified adjusted gross income, which is what the marketplace uses.  However, if you have to repay part of the Advance Premium Tax Credit, that will increase your tax.

 

 

Hope this helps!

Cindy