Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Health Insurance+ Advice Needed - Transition to FI / Semi RE
Old 01-04-2015, 01:57 PM   #1
Recycles dryer sheets
Join Date: Aug 2013
Posts: 349
Health Insurance+ Advice Needed - Transition to FI / Semi RE

Rather than stopping cold turkey, I plan on easing into RE.

This month I'll be setting up an LLC and switching over from being a full-time employee to a part-time consultant at roughy 20 hours per week.

I've run as an independent before so I'm fairly familiar with most of the business and accounting issues. I haven't had to purchase health insurance though in several years.

The initial plan is for a single-member (Husband/Wife) LLC and manage it as a disregarded entity.

I plan on roughly 85K in net profit.


1. Any suggestions on Health Insurance now that ACA is in place? Does it make sense to use even if we don't qualify for a subsidy? Gold, Silver, Bronze? HSA or Not?

2. SEP or Solo 401k? We have other options for income so I don't mind sheltering as much as possible. I know how the SEP works as I had one for quite awhile. The Solo 401k is less clear to me. How does it work if I do not take any salary, in other words, I don't have payroll. How does the employer contribute a portion in that case?

Any other ideas, suggestions?


aim-high is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-05-2015, 09:48 AM   #2
Thinks s/he gets paid by the post
Gotadimple's Avatar
Join Date: Feb 2007
Posts: 1,497
Congratulations on your beginning the transition.

I can't answer your second question, but I would guess the CPA you use for your LLC can give you the best advice.

Regarding health insurance, the is a market place that lists all carriers in one place for your state. You can go it alone to try and find a carrier, or use the marketplace (or an independent insurance agent). You are correct you won't get the subsidy, but your taxes paid for the sight, so IMO -- use it!

If you will be working for several more years and have the cash flow to support the out of pocket expenses from your new health plan, an HSA would be very worthwhile. Just like the SEP or Solo401K, you are sheltering income. There are many HSA providers out there, I use HSABank as they have the lowest administrative fees (i.e., no monthly charge for the account after a minimum deposit is made).

-- Rita

Only got A dimple, would have preferred 2!
Gotadimple is online now   Reply With Quote
Old 01-05-2015, 10:08 AM   #3
Thinks s/he gets paid by the post
Join Date: Mar 2010
Posts: 1,595
AIMHIgh, I don't qualify for a subsidy and I did not use, primarily because I saw no benefit in doing so. I did compare prices offered on to the private, individual off market prices and found them pretty much the same in the state of Virginia. Every state could be different so it pays to do your research.

I analyzed the cost and benefits of each plan offered by Anthem in my state. I also looked at other insurers (Humana, Optima, etc.). I chose to stay with Anthem. I have been with them since college and they had never let me down ….yet!

It boiled down to (1) you either pay up front for some office visits and tier one drugs or (2) you pay if you need it. I chose the bronze plan as it "looked" to be cheaper for me than the Silver, Gold or Platinum, considering everything goes towards the high deductible including drug cost.

It took some mental gymnastics for me to get over the fact that if I have to go to the doctor, I will be paying more than a copay. I will be paying the allowable charge as long as I stay "in network". It is also different for me having to deal with a network as I have been able to go to any doctor I wanted…until now..unless going forward I choose a POS plan, But the cost of that was over double the premium of the bronze plan.

If it doesn't work out, I can always switch next year. In other words, it is not a decision carved in stone.

I chose a plan with an HSA. The tax savings helped a bit, sheltering that money from taxation, in affect reducing my cost a bit more.

That said, I am not on any medication and do not have a medical condition (yet!) Those are factors one should consider.

Can't answer your second question.
sheehs1 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
the Semi-retired and the health care act KevininIowa Health and Early Retirement 40 02-07-2013 11:12 AM
Seek Advice re "2nd Home" to "Rental House" Transition Bonden FIRE and Money 3 05-18-2010 09:32 AM
What about unemployment insurance at semi retirement accountingsucks FIRE and Money 1 05-05-2007 07:14 PM
Transition Plan Needed RockMiner Other topics 4 10-28-2004 05:10 PM
transition to retirement portfolio Martha FIRE and Money 23 03-14-2004 11:42 PM


All times are GMT -6. The time now is 12:11 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.