A 401(k) Withdrawal Can Lead To Trouble For Health Plan Subsidies

(By Michelle Andrews, Kaiser Health News)

This week I answered a grab bag of questions from readers about premium tax credit repayments for marketplace plans, out-of-network emergency care and nursing home bills.

While doing my taxes I discovered that I made more money in 2015 than I anticipated. I was forced to take money out of my 401(k) to make ends meet during the year and that raised my income level. Now I face having to pay back $1,500 for premium tax credits I received to subsidize my marketplace plan’s premiums. What am I supposed to do?

It’s not uncommon for people to fail to count one-time income bumps from retirement savings or other sources when they’re estimating their annual income to qualify for advance premium tax credits for marketplace coverage, said Tara Straw, a senior policy analyst at the Center on Budget and Policy Priorities. Read more…

 

Kaiser Health News is a nonprofit national health policy news service that is part of the nonpartisan Henry J. Kaiser Family Foundation.

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