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Hello, I知 on the bubble....
Old 02-10-2018, 05:05 PM   #1
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Hello, I知 on the bubble....

Looking at a package offer now. 581/2, NW of $1.3, 700k retirement accts, 400k deferred comp( pays out equally over 5 yrs, 300k cash, and annual pension of 60k. No debt and pedestrian tastes.
I知 concerned that medical for 60-65 could make things tight. Is 30k yr a reasonable budget for ACA policy?
I have 30 days to decide, job is ok but life would be better.
Firecalc says I知 ok if I LBYM. Considering Mexico or Panama for a while.
Any advice about expat or medical cost management appreciated.
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Old 02-10-2018, 05:23 PM   #2
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Hello ClayMore and welcome to the ER forum. Without knowing your annual expenses I can't give you much advice on what to do, but I do think that $30K for ACA (assuming your single) is more than adequate.

I'm sure others will chime in on that as well as your living abroad questions.
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Old 02-10-2018, 05:35 PM   #3
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30k for ACA might well be within reason now, and post-cobra now (which is why i think you say starting at 60), but a lot can change between now and the next couple years. While no ACA changes are going to happen in congress in 2018 (no budget resolutions being opened per the senate, and would need to swing R in the fall for them to try again), it's not something we can bet on for the next 7 years.

That said, I'm ER'd with a bigger window and just gonna deal with what happens! I tend to not worry about things that I cannot control. And if the ACA starts costing north of 30k after subsidies then I'd be very surprised.

How good is the package offer?
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Old 02-10-2018, 05:59 PM   #4
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Pension and savings would give you an income in retirement of at least $100K not counting SS. No doubt you can retire on that considering the majority of retired people live on less than half of that. It's up to you if you want to work longer to have a more lavish lifestyle. Only you can make that choice.
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Old 02-10-2018, 06:08 PM   #5
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Is 30k yr a reasonable budget for ACA policy?
I just looked at the ACA plans available in my area for a 60 year old. The most you could pay is about $18,000 in premiums and $7000 out of pocket max for a total of $25K. Could be $20K or less if you are healthy so $30K is plenty. Your area may be a little more expensive(or less).
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Old 02-10-2018, 07:05 PM   #6
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ClayMore,
I would look into the the ACA policies on the Healthcare Exchange for Atlanta.
It might not be in the 30k range.
I am 57 and pay a monthly premium of 156 and max yearly OOP of $1,250. This is for a Silver Plan in Tampa Florida from Florida Blue.
Edit - the above is based on managing MAGI down to 20k yearly.
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Old 02-10-2018, 07:07 PM   #7
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ClayMore,
I would look into the the ACA policies on the Healthcare Exchange for Atlanta.
It might not be in the 30k range.
I am 57 and pay a monthly premium of 156 and max yearly OOP of $1,250. This is for a Silver Plan in Tampa Florida from Florida Blue.
You must have a big subsidy. The OP has a large income and will get no subsidy.
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Old 02-10-2018, 07:11 PM   #8
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Good point. Just reread the post for the 60k pension. From that perspective, plus other potential income as a single, would Claymore have too high an MAGI to even qualify for ACA coverage?
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Old 02-12-2018, 08:41 AM   #9
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Thanks all for your feedback. The package is a lump sum cash payment of 200k and 12 months subsidy on Cobra. Had it been a rule of 75 this would be a no brainer since that would include retiree medical to 65. As it stands, I would need to work another 3-1/2 yrs to make the 20 that qualify for medical.
I need to check but believe I can defer pension payout but can’t postpone the deferred comp. if that were my only income is it feasible to manage it (80k) down to a susbsidy qualifying level using IRA contributions?
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Old 02-12-2018, 04:53 PM   #10
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In SF Bay Area a platinum insurance monthly premium range $1,250 to $2,400 per person, depend on insurance. ACA could be lower.
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Old 02-12-2018, 05:44 PM   #11
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The maximum income (MAGI) for a single living in Georgia to qualify for an ACA subsidy for 2018 is $48,240.
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Old 02-12-2018, 06:12 PM   #12
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..........I need to check but believe I can defer pension payout but can稚 postpone the deferred comp. if that were my only income is it feasible to manage it (80k) down to a susbsidy qualifying level using IRA contributions?
We are retired and on ACA. We have delayed taking pensions and manage income to keep MAGI below the subsidy thresholds. There are several threads on the forum you can search that cover ACA and MAGI. Also the Kasier Family Foundation calculator will help determine subsidy amounts and threshold levels.
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Old 02-12-2018, 06:43 PM   #13
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You must have a big subsidy. The OP has a large income and will get no subsidy.


No kidding! To quote a price with an ACA subsidy is misleading. I'm in a state with multiple insurance companies and at 62 pay $844/month with $3,500 deductible
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Old 02-12-2018, 08:14 PM   #14
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Check out healthsherpa.com

It looks like an unsubsidized bronze plan in Atlanta would be ~$800/month.... the cost of freedom!
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MAGI call for ACA
Old 02-13-2018, 04:51 AM   #15
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MAGI call for ACA

I found some info on MAGI calculation for ACA that is helpful. Apparently, the calculation for ACA allows you to deduct IRA contributions, HSA contributions and a portion of medical expenses. While its a bit circular, premiums are also deductible. That should work for me because I can defer pension payout to age 65 and am only required to be paid out for the SRP portion of the pension and full amount of deferred comp. That amounts to ~ $75k. I have to do the math but with these deductions , I stand a decent chance of managing MAGI to below the subsidy cliff. If not, there痴 always south of the Border for care and north of the Border for meds. Since we are no longer faced with a tax penalty for ACA non-compliance, I知 more optimistic about my ability to meet my health care needs. Step 1 is to swap 150 minutes per day of stressful commute for 30 minutes of walking and 120 minutes of peacefulness with DW and the fur babies!
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Old 02-13-2018, 06:44 AM   #16
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Claymore,
I didn't know that the ACA medical premiums were an MAGI calculated deduction.
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Old 02-13-2018, 06:49 AM   #17
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Quote:
Originally Posted by ClayMore View Post
I found some info on MAGI calculation for ACA that is helpful. Apparently, the calculation for ACA allows you to deduct IRA contributions, HSA contributions and a portion of medical expenses. While its a bit circular, premiums are also deductible. That should work for me because I can defer pension payout to age 65 and am only required to be paid out for the SRP portion of the pension and full amount of deferred comp. That amounts to ~ $75k. I have to do the math but with these deductions , I stand a decent chance of managing MAGI to below the subsidy cliff. If not, there痴 always south of the Border for care and north of the Border for meds. Since we are no longer faced with a tax penalty for ACA non-compliance, I知 more optimistic about my ability to meet my health care needs. Step 1 is to swap 150 minutes per day of stressful commute for 30 minutes of walking and 120 minutes of peacefulness with DW and the fur babies!
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Claymore,
I didn't know that the ACA medical premiums were an MAGI calculated deduction.
They're not. IRA and HSA contributions can reduce MAGI but not health care premiums.

See here for ACA MAGI calculations http://laborcenter.berkeley.edu/pdf/..._summary13.pdf
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Old 02-13-2018, 06:53 AM   #18
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They're not. IRA and HSA contributions can reduce MAGI but not health care premiums.

See here for ACA MAGI calculations http://laborcenter.berkeley.edu/pdf/..._summary13.pdf
Thanks Michael B. That is the reference I have been using.
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Old 02-13-2018, 07:29 AM   #19
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Quote:
Originally Posted by ClayMore View Post
I found some info on MAGI calculation for ACA that is helpful. Apparently, the calculation for ACA allows you to deduct IRA contributions, HSA contributions and a portion of medical expenses. While its a bit circular, premiums are also deductible. That should work for me because I can defer pension payout to age 65 and am only required to be paid out for the SRP portion of the pension and full amount of deferred comp. That amounts to ~ $75k. I have to do the math but with these deductions , I stand a decent chance of managing MAGI to below the subsidy cliff. If not, there’s always south of the Border for care and north of the Border for meds. Since we are no longer faced with a tax penalty for ACA non-compliance, I’m more optimistic about my ability to meet my health care needs. Step 1 is to swap 150 minutes per day of stressful commute for 30 minutes of walking and 120 minutes of peacefulness with DW and the fur babies!
If your income is $75k wouldn't you already be over the subsidy cliff for a couple?

No IRA contribution deduction allowed unless you have earned income (which you will have in 2018 since you are still working but I presume not in 2019 and beyond) but you could do a HSA without earned income but that still leaves you at $66,250 and 400% FPL for 2018 is $64,960.

Why not just suck it up and pay the freight for an unsubsidized ACA plan rather than do the contortions south and north of the border?

Also, since the lowest cost bronze plan would be more than 8% of your income you could buy a catastrophic plan even though you are over 30... the deductible will be highe but the premium will be lower.
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Old 02-13-2018, 09:37 PM   #20
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Thanks all for clarifying the medical expense deductibility.
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