Question

QHFDS and impact on ACA subsudy

Forum|Forum|6 years ago
December 13, 2019
1 reply
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Does making an HSA contribution from an IRA reduce my MAGI for the purposes of determining my ACA subsidy?

Employee

No. A qualified HFD has no effect on your MAGI for ACA purposes because the HFD does not change your AGI. An HFD can only be made from IRA funds that would otherwise be taxable if you distributed all amounts in your IRA in a single year.

If you want to reduce MAGI by making an HSA contribution you would need to make the HSA contribution using after-tax funds and take a deduction for the HSA contribution.