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Old 12-09-2018, 05:20 PM
 
Location: Pueblo area
211 posts, read 121,313 times
Reputation: 473

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62, health plans start at $1,000. If I can keep my 2019 income at $24K, I get a $128 premium, $800 deductible, max out $1,700. 2018, I paid $108 a month, claims were $135, so I do not feel guilty.

Income 25K, deductible goes to $3,300, max goes to $5,200.

Cutting it close if could live on 24K for 2019, now investigating if HELOC and credit cards can get me going to 65.

Not sure what is more pathetic. Me waiting/wishing until 65 or getting tax subsidies while sitting on my IRA.
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Old 12-09-2018, 05:58 PM
 
Location: Florida
4,356 posts, read 3,689,532 times
Reputation: 4084
Consider moving money from your IRA to a ROTH IRA before year end. The money you move will be income and taxed in 2018. The money you take from your ROTH in 2019 is not taxable income. BUT it might be counted as income for ACA so check the rules before you do this. Note when you move the money it has to go from your IRA to the ROTH directly. The money can not go to you first. This is easy to do and you should be able to have the institution that holds your IRA do it for you.
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Old 12-09-2018, 06:24 PM
 
Location: North Las Vegas
429 posts, read 332,282 times
Reputation: 348
Quote:
Originally Posted by rjm1cc View Post
Consider moving money from your IRA to a ROTH IRA before year end. The money you move will be income and taxed in 2018. The money you take from your ROTH in 2019 is not taxable income. BUT it might be counted as income for ACA so check the rules before you do this. Note when you move the money it has to go from your IRA to the ROTH directly. The money can not go to you first. This is easy to do and you should be able to have the institution that holds your IRA do it for you.
So the Roth conversion 5 year rule does not apply?
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Old 12-10-2018, 02:05 AM
 
6,875 posts, read 7,267,992 times
Reputation: 9785
OP, do you do all that figuring out of necessity? OR you just get a kick out of it? Which is OK. No judgment at all.

I'm just asking because I can't imagine having to in my words "finagle all that."
Then again, I do get a kick out of saving a few bucks by matching coupons with weekly sales, or juggling credit cards.
So I guess we do all have our things on which we're willing to expend our mental energy.
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Old 12-10-2018, 07:27 AM
 
Location: Florida
4,356 posts, read 3,689,532 times
Reputation: 4084
Quote:
Originally Posted by usnftcret View Post
So the Roth conversion 5 year rule does not apply?
Did not remember the 5 year rule so that should be checked out as their could be an exception.
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Old 12-10-2018, 11:28 AM
 
Location: Pueblo area
211 posts, read 121,313 times
Reputation: 473
Quote:
Originally Posted by selhars View Post
OP, do you do all that figuring out of necessity? OR you just get a kick out of it? Which is OK. No judgment at all.

I'm just asking because I can't imagine having to in my words "finagle all that."
Then again, I do get a kick out of saving a few bucks by matching coupons with weekly sales, or juggling credit cards.
So I guess we do all have our things on which we're willing to expend our mental energy.
Not sure of your point, but on my planet the $900 a month subsidy is a big deal. It goes to Kaiser. Yes, I know, one year I am healthy, next year in the hospital running up massive bills that no one could possibly pay.
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Old 12-11-2018, 12:47 AM
 
Location: Pueblo area
211 posts, read 121,313 times
Reputation: 473
Started this rant last year. Still creeps me out. You could sit on a million-dollar stock portfolio and still get a subsidy. The truck driver making $50K pays $1,000 a month. Since my IRA is not counted and inalienable, I pay $100 and the US Treasury pays Kaiser $900.

The fun thing about Obamacare is everything is based on Federal Poverty Level(FPL). 2018, it is $11,880. There are cliffs at 100%, 138%, 150%, 200%, 300%, 400%. If you have less than 138% of FPL, you get Medicaid, but you must submit tax returns to show you are poor. 138% to 400% FPL, no means testing, and you get tax subsidies for health care. I found the sweet spot to be just under 200% FPL.

This has been an adventure. The transition from employer health insurance to COBRA to you are on your own.

Last edited by CatPeople; 12-11-2018 at 01:21 AM..
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Old 12-11-2018, 03:50 AM
 
Location: Albuquerque NM
1,656 posts, read 1,521,066 times
Reputation: 3627
CatPeople, I agree with you that the way ACA subsidies are administered is "creepy" and I do not feel it is fair to base them on income only without considering assets. However it seems that you have been a productive working person most of your life and are receiving subsidies for just a few short years and only for one person. So don't be too hard on yourself. There are early retirees who are starting subsidies in their 50's or even younger and for their entire families including children. Now that's pathetic.
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Old 12-11-2018, 12:34 PM
 
12,100 posts, read 6,682,852 times
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Quote:
Originally Posted by ABQ2015 View Post
CatPeople, I agree with you that the way ACA subsidies are administered is "creepy" and I do not feel it is fair to base them on income only without considering assets. However it seems that you have been a productive working person most of your life and are receiving subsidies for just a few short years and only for one person. So don't be too hard on yourself. There are early retirees who are starting subsidies in their 50's or even younger and for their entire families including children. Now that's pathetic.

It is so people with low income don't have to spend all their retirement funds on medical insurance and medical care. One big health issue and you can be bankrupted. Then you end up a poor senior getting even more benefits, is that better than getting a subsidy for a few years until you qualify for Medicare?

Most older people have been paying years and years of taxes, supporting all kinds of programs they have never used, and those with a retirement fund saving for years. Health insurance premiums are through the roof for this age group. I don't see it as creepy at all that they qualify for this one temporary benefit after years of paying for everyone else.
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Old 12-11-2018, 12:35 PM
 
Location: Pueblo area
211 posts, read 121,313 times
Reputation: 473
Quote:
Originally Posted by ABQ2015 View Post
CatPeople, I agree with you that the way ACA subsidies are administered is "creepy" and I do not feel it is fair to base them on income only without considering assets. However it seems that you have been a productive working person most of your life and are receiving subsidies for just a few short years and only for one person. So don't be too hard on yourself. There are early retirees who are starting subsidies in their 50's or even younger and for their entire families including children. Now that's pathetic.
Congress talks about simplifying the tax code. I spend sleepless nights calculating how to pay my $1,000 a month health insurance. Went to a doc this year, all is good today, but if what if what if.
Maybe the point of Obamacare was a teachable moment about the real cost of US healthcare.
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