Will withdrawal from ROTH IRA affect our ACA subsidy? Our income from SS & retirement is currently less than $45,000 & we might add about $30,000 per year from our Roth.

[kaymccary]

We are 65 & 64 & have had the Roth for more than 5 years.

[SweetieJean]

Does the 65 year old have Medicare?

[kaymccary]

Yes he just went on Medicare in Sept and was taken off our ACA.  So only I have the ACA now.

[Zbucklyo · Accepted solution]

A non-taxable Roth withdrawal is not counted as income for the calculation of MAGI (modified adjust gross income) for the purposes of determining ACA subsidies. 

On a side note, if you are over 65, you are not eligible for an ACA subsidy if you qualify for premium-free Medicare Part A.  In addition, while you can stay enrolled in your current ACA plan in this situation, you may not switch plans, or enroll in an new one.  It is illegal for an insurance provider to sell an ACA plan to someone eligible for premium-free Medicare Part A. 

If you are not eligible for premium-free Medicare Part A (generally, if either you or your spouse have 40 quarters of work history, Medicare Part A is free), you are free to continue in your ACA plan and receive subsidies.