Don’t get stuck paying back your Marketplace Health Insurance premiums at the end of the year!
If you’re considering taking a distribution from your IRA or selling an asset, consider this first. Do you have insurance through the Marketplace? If so, you could be required to pay back the reduced premiums. When you apply for health insurance on the Marketplace, your monthly premium is based on your income. Taking money out of an IRA or selling an asset increases your income. If your income is more than what you submitted, the IRS may require you to pay back the reduced premiums.
Although it’s best to make income decisions prior to the new year, it’s not too late to make decisions that decrease your income. You have until April 15th the following year to get your income down through HSA’s, IRA investments, and tax deductions. Don’t delay.