Hi, can someone receiving ACA subsidies due to low wages, open and contribute to a Roth IRA without a reduction or loss of ACA subsidies?
Would being eligible and taking the ‘savers credit’ on income taxes impact their ACA subsidies?
The "savers credit" is based on MAGI and those savings come off after MAGI is calculated. This means that it won't affect your tax credit, but can affect that actual amount you owe in taxes.
The rule of thumb with all of this stuff is that if something lowers your AGI/MAGI it most likely qualifies you for more assistance (or in worst cases can bar you from assistance programs if MAGI goes to low). This is true for ObamaCare's premium tax credits. If your MAGI (after funding a traditional 401k, HSAs, and the like) is lower you can claim a larger premium tax credit on form 8962 and/or avoid paying back previously claimed advanced tax credits.
Regular IRA contributions are deducted from AGI the year contributed, and included in AGI the year it’s taken out. Roth IRA's are counted the year they are contributed, and not counted on the way out.