I’ve been on MinnesotaCare for almost a year. The income limit to stay on it is $30,120.
In 2024, I made $34,883.
I can contribute $4,000 to a Traditional IRA (I already put $3,000 into a Roth IRA, so I can only put up to $7,000 total across both) to lower my taxable income to $30,883.
That still puts me $763 over the limit.
I originally reported that I’d be making even more this year, but after seeing my options on the marketplace, I’m trying to stay under the limit instead.
Since I went over the limit for the year, what happens now? Will they come after me saying I owe money? Will they just kick me off, even though now my income is below the limit again? Or is this something worse?
Any advice or links to useful reading would be really appreciated. Thanks.
If this is a medical emergency, call 911. If you’re asking about choosing a plan, check past discussions. If you haven’t included your state and income details, that might help others give better advice. No soliciting allowed.
Are you self-employed or a W-2 employee? If you’re self-employed, you might be able to find another $763 in deductions—like mileage, business expenses, or other work-related costs.
If not, you can’t convert Roth IRA money into a traditional IRA, but you could withdraw from your Roth as cash and then put that amount into a traditional IRA before April 15 to lower your taxable income.