Will IRA distribution count as income when considering Premium Tax Credit (PTC) eligibility? Will it make any difference if converting it to a ROTH IRA at the same time?
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Will IRA distribution count as income when considering Premium Tax Credit (PTC) eligibility? Will it make any difference if converting it to a ROTH IRA at the same time?
For example, if $12,000 income is needed to get Premium Tax Credit in 2017, assuming other income of $5000, will converting $7000 from IRA to ROTH be eligible for PTC?
Will IRA distribution count as income when considering Premium Tax Credit (PTC) eligibility? Will it make any difference if converting it to a ROTH IRA at the same time?
Yes the conversion will count as income for the PTC.
Will IRA distribution count as income when considering Premium Tax Credit (PTC) eligibility? Will it make any difference if converting it to a ROTH IRA at the same time?
That is assuming the original Traditional IRA was all deductible. If part of it was non-deductible contributions, then only part of the conversion would be taxable.
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