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New Member
posted Mar 26, 2025 11:46:38 AM

why is the money from my 401K going against my health insurance discount and what I qualify for?

This was a withdraw, not a loan and taxes where taken out.

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1 Replies
Expert Alumni
Mar 26, 2025 12:15:29 PM

A 401(k) distribution is taxable as retirement income and will count as income for determining the health insurance Advance Premium Tax credit. This extra income will cause a decrease of your Premium tax credit.

 

Please read this Healthcare.gov document for more information.