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posted Jun 4, 2019 10:27:05 PM

Took IRA distribution. Lost all ACA subsidy. Can this be un-done?

In 2016 I estimated my income for the ACA and received a subsidy on the healthcare premiums. But I took a final distribution on an inherited traditional IRA in 2016 and the 1099-R marked all the IRA distribution as taxable, so I unexpectedly exceeded the $48K ACA income limit, and thus lost (will have to pay back) all of the $5200 subsidy. The distribution was more than 60 days ago and I have no earned income. Is there any way to un-do what was done in 2016 or any strategy to manage this unfortunate situation.


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Level 15
Jun 4, 2019 10:27:06 PM

With no earned income to support a new deductible traditional IRA contribution, there is nothing you can do unless you are eligible to contribute to an HSA based on having compatible health insurance and other qualifying factors.