My sister is contemplating retirement in three to five years,and is trying to set herself up to qualify for some amount of subsidy for health insurance. My question for the board is will a Roth 401k be excluded from the income calculation in order to qualify?
She will be over 59 1/2 years old and will have had the Roth 401k for at least 5 years.
TIA
JK
https://www.healthcare.gov/income-and-household-information/…
Include most IRA and 401k withdrawals. (See details on retirement income in the instructions for IRS publication 1040). Note: Don’t include qualified distributions from a designated Roth account as income.
Thanks for that,vkg. I will pass that info along.
JK
She will be over 59 1/2 years old and will have had the Roth 401k for at least 5 years.
I would point out that she would only have to leave the employer in or after the year she turns 55, not be at least 59 1/2, to take qualified withdrawals from the Roth 401(k).
AJ
Thanks for the info aj. She may claim to be 55,but I know better!
Jk