By skyforbes Michigan resident. I would like to do an in-plan rollover of $7k or less from Traditional Retirement Plan to Roth in December 2025 (staying in the same employer retirement plan, just rolling over the accumulated savings to a Roth version of this plan). Do you know if DHS is going to treat the $7k as a one month income and this will make me lose my MAGI Medicaid in 2026 because I will exceed the allowed income limit only in that one specific month? How long will I be ineligible for Medicaid if this happens?
OR is DHS going to average this $7k over 12 months and will add one twelfth of $7k to my 2026 monthly income in order to see if I am still eligible for Healthy Michigan Plan Medicaid in 2026? OR will they add one twelfth to my 2025 monthly income to see if I am still eligible in 2026? OR will they treat the whole $7k as income in one month (December 2025) and will add it to the full year 2025 MAGI, and then divide the sum by 12? I want to make sure I don’t do the rollover if it makes me lose health insurance. If this is in any way relevant, I am a singe working parent of a kid younger than 18.
OR is DHS going to average this $7k over 12 months and will add one twelfth of $7k to my 2026 monthly income in order to see if I am still eligible for Healthy Michigan Plan Medicaid in 2026? OR will they add one twelfth to my 2025 monthly income to see if I am still eligible in 2026? OR will they treat the whole $7k as income in one month (December 2025) and will add it to the full year 2025 MAGI, and then divide the sum by 12? I want to make sure I don’t do the rollover if it makes me lose health insurance. If this is in any way relevant, I am a singe working parent of a kid younger than 18.
In your response, if possible, could you please mention if your knowledge comes from your own experience, or if this is your best guess, or if you work for DHS and are 100% sure in your response? Thank you so much!