Dear Mr. Slott and Associates,

I have a conundrum involving basically a tax question relating to Obamacare and Roth accounts. Here goes. If a person was on Obamacare during the first part of a year (2020) then transitioned over to Medicare going forward, AND during the second half of that year they moved money from their 401k to a Roth account, would that amount transferred be considered reportable income to Obamacare when filling out form 8962? I realize that the amount would be considered income to the IRS and I would need pay taxes on the amount converted, but does that amount converted need to be considered in the modified AGI for purposes of qualifying for the Obamacare supplement and thus lower or possibly disqualify one for the entire supplement – even though that ‘income’ was not accessed until after the person has transitioned out of Obamacare BUT did the converting to the Roth within the same calendar year? Sorry for the run-on sentence.

I have not seen a question concerning this situation addressed anywhere, but with your vast amount experience and the information available to you and contacts you have, perhaps this question has come up before to you. Thank you for considering this question!