GLOSSARY · RETIREMENT WITHDRAWALS & EARLY ACCESS
ACA premium tax credit
A tax credit that lowers the cost of marketplace health insurance, sized by your household income relative to the federal poverty line. The enhanced credit for 2021 to 2025 expired, so from 2026 the credit again stops entirely above 400% of the poverty line, which makes the income an early retiree reports a major planning lever.
Also called: aca subsidy, obamacare subsidy, subsidy cliff, marketplace subsidy
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSHealth Insurance and the Health Savings AccountCHAPTER · TAX PLANNING FUNDAMENTALS · FOUNDATIONSDeductions, Credits and a Yearly Tax Check-UpRELATED TERMS
SOURCES
- 26 U.S.C. §36B. U.S. Code.
- Rev. Proc. 2025-25. Internal Revenue Service.