ACA Subsidy Cliff: Avoiding Financial Shock
Update: 2025-11-18
Description
ACA Subsidy Cliff: A Looming Financial Challenge for HouseholdsThe ACA subsidy cliff, a strict income limit for premium tax credits, threatens to increase health insurance premiums for millions of Americans. Before 2021, the limit was 400% of the federal poverty line, but recent legislation temporarily removed this cliff. However, this fix is set to expire, potentially causing a significant financial shock for many households. Financial advisors recommend strategies like managing income, utilizing Roth IRA withdrawals, and strategically selling investments to avoid going over the income limit and paying thousands more for health insurance.
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