Covered California benefits / adjusted gross income

MartinJ

Expert
24
I get health insurance subsidies from Covered California. It's supposed to be based on one's adjusted gross income. This seems strange that it wouldn't be based off capital gains. What happens if I cash $5,000 out of a variable annuity in 2024, then invest the proceeds into some stock or bond funds (or even a CD) for a few months, then cash out $5,000 again in 2024. Would that increase my capital gains by $10,000 instead of $5,000, and thus reduce my Covered California benefits? If so, it would be better to sit in cash, or wait until right when I actually need the money around the end of the year. This variable annuity is of course expensive, but if my health insurance benefits are significantly reduced, it would be best to just keep the money in the annuity until the end of the year.
 
Any capital gains are added to your AGI. How much in cap gains is based on your annuity cost basis, interest, etc. Regardless, AGI will go higher based on scenario above. But I'm not a cpa
 




 




Sightings of human feces on the sidewalks are now a regular occurrence; over the past 10 years, complaints about human waste have increased 400%.

Also known as Nancy Pelosi and Maxine Waters. :twitchy:
 

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