topic I moved an annuity to a different company. It shows on 1040 as non-taxable income. I didn't get the money. Why does this effect my Marketplace Insurance as income rec'd? in Retirement tax questions

I moved an annuity to a different company. It shows on 1040 as non-taxable income. I didn't get the money. Why does this effect my Marketplace Insurance as income rec'd?

dandor1 — Tue, 10 Feb 2026 11:16:47 GMT

I have to pay back $400 due to this raising my income vs. reported. My received income for the year is exactly the same as reported to Marketplace. I didn't receive this income. Just moved it. Why would my insurance cost go up due to this move?

Re: I moved an annuity to a different company. It shows on 1040 as non-taxable income. I didn't g...

ThomasM125 — Wed, 21 Feb 2024 18:43:43 GMT

What you describe is a non-taxable pension plan distribution that appears on line 5(a) on your form 1040. The taxable amount does not show on line 5(b) so it doesn't affect your income tax. It is possible to have a distribution from a pension plan that would not be taxable even if you didn't roll the funds over to another plan. In that case, the distribution would count as income for marketplace purposes I would think. Since you did a rollover, you should see "rollover" on your form 1040 by line 5, and that should tip the marketplace off to the fact that the distribution is not income in your situation. I suggest you call the marketplace and explain what happened to see if they can offer a remedy.

Re: I moved an annuity to a different company. It shows on 1040 as non-taxable income. I didn't g...

dandor1 — Wed, 21 Feb 2024 23:06:28 GMT

Thanks so much for your clear and concise reply! I apprecitate it!