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I have a client that withdrew $100k from her deceased husbands 401k and we had taxes taken out. The problem is, is that she is also on the Healthcare marketplace in CO and when I enter her Form 1095-A, she is being required to pay back 98% of her 2021 premium tax credit. Any suggestions would be greatly appreciated. She now owes over $7,500. Thank you.
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All you can do is try to lower her AGI below the thresh hold/cliff.
IRA (if she has earned income)
SEP ( if she's self-employed)
HSA contribution (if she qualifies).
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She doesn't have any earned income. I thought about the IRA, as well as the rollover but she is past the 60 day timeframe.
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It's hard to get that horse back in the barn after the fact...
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Oh well. Thought I would ask just to see if anybody else had any ideas. I knew it was a long shot. Thanks and have a great evening.
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It's easy to get the horse back in the barn. But putting the toothpaste back in the tube, is difficult. Wait till she finds out her Medicare premiums are going up because of this, also.
