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?
02725
2 Replies
Critter
Level 15
Jun 6, 2019 6:44:35 AM
Yes the conversion will count as income for the PTC.
TaxGuyBill
Level 9
Jun 6, 2019 6:44:36 AM
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.