I went thru WAHealthplanFinder.org to find a health plan. Does my distributions from my IRAs (one was a 401k that was converted to an IRA when I wanted distributions and the other is a Roth IRA) count as income? It seems to me that those should be counted as savings, not income.
I do collect SSA and a small pension that amounts to $1383.87. They are also counting my $502/month for a total income of $1885.87/month to determine my subsidy.
So, do my distributions from my IRAs count as income when determining what my subsidy should be?
Taxable income, including social security payments, taxable IRA contributions, and taxable IRA interest aren't deducted from Modified AGI. Your Modified AGI is used to determine subsidies. So yes, these amounts are counted toward your total household income and thus do affect the subsidy amounts you are eligible for.
To clarify, 401k's work different than Roth IRA's.
401k distribution counts towards household income, but that the Roth IRA distribution does not. Contributions work in the exact opposite way, as again, this is all based on if you are getting a deduction (which decreases MAGI) or are claiming taxable income (which increases MAGI).