Join Early Retirement Today
View Poll Results: Will you try to get the ACA subsidy?
Yes, the thousands saved would be worth the reduced budget 80 42.55%
No, the threshold is too low for the planned budget 23 12.23%
Undecided, still looking for more info. on how the subsidies would work 43 22.87%
Don't plan to use ACA plan, have alternative health care 42 22.34%
Voters: 188. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Old 04-01-2013, 05:29 PM   #21
Full time employment: Posting here.
 
Join Date: Dec 2010
Posts: 572
Quote:
Originally Posted by explanade View Post
What about those who withdraw enough for 3 years of expenses?

So one year with big income and then the next two years, nothing.

Can it be that easy to determine your income so that you get the subsidy?
I suppose that is the solution if the amount each year that would qualify you for the subsidy is not enough to see you through the year.
__________________

__________________
bondi688 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 Early-Retirement.org 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 04-01-2013, 05:33 PM   #22
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,487
I didn't answer the poll because it didn't include my option. We definitely will use the state health exchange to get our policies, and I will manage the portfolio the same way I have done 'till now, no change. If we qualify for a subsidy we will take it, but it will not be part of our portfolio planning.
__________________

__________________
MichaelB is offline   Reply With Quote
Old 04-01-2013, 05:35 PM   #23
Full time employment: Posting here.
 
Join Date: Mar 2005
Location: Punta Gorda, FL
Posts: 666
I wonder if you can file "Married filing separately", with one spouse getting the subsidy and one not?
__________________
dm is offline   Reply With Quote
Old 04-01-2013, 05:46 PM   #24
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,487
Quote:
Originally Posted by dm View Post
I wonder if you can file "Married filing separately", with one spouse getting the subsidy and one not?
Subsidy is based on household income.
__________________
MichaelB is offline   Reply With Quote
Old 04-01-2013, 06:18 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Since I'm on the Medicare/Tricare teat, I suppose that I will only be paying higher taxes so that others may become covered by the plan.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 04-01-2013, 06:23 PM   #26
Thinks s/he gets paid by the post
Htown Harry's Avatar
 
Join Date: May 2007
Posts: 1,516
Quote:
Originally Posted by retire2020 View Post
I'm planning to be on obamacare In future. We will be family of 5 until my daughter finishes her college in 2022 and then family of 4 until 2030...that means i will keep MAGI below 110K initially and then 92K after 2022. Kids up to 26 can stay on parents plan provided they're in college and hoping my kids get into medical college which takes 8 yrs to complete.
There may be provisions related to household size and the subsidy thresholds with other implications, but it is not a requirement for the adult child under 26 to live at home or to be a student in order to continue as an enrollee on a parent's employer-based family HI. This went into effect in early 2012, I believe.

My DD, 23, is in the sweet spot. She graduated from college just a few months before my employer's annual plan enrollment allowed adult children to remain on their parents' plan until 26. (Before that, she was eligible to stay on the plan only as long as she was a full time student.) When she turns 26 in 2015, Obamacare should be well-established with most of the first-year craziness over with.
__________________
No doubt a continuous prosperity, though spendthrift, is preferable to an economy thriftily moral, though lean. Nevertheless, that prosperity would seem more soundly shored if, by a saving grace, more of us had the grace to save.

Life Magazine editorial, 1956
Htown Harry is offline   Reply With Quote
Old 04-01-2013, 06:31 PM   #27
Dryer sheet aficionado
Germonico's Avatar
 
Join Date: May 2011
Posts: 25
dm, I've been thinking the same thing regarding filing status of married filing separately since DW's employer pays for her premiums (as a teaching assistant). I on the otherhand may have to go to the exchanges for my coverage. Doesnt seem right that total income will be used on the cost side of the equation but there will be nothing recieved on the value side (for her anyway). Note also our combined income is very close to the Obamacare Cliff point mentioned in other threads. Just one more unknown to worry about in the coming months.
__________________
Germonico is online now   Reply With Quote
Old 04-01-2013, 06:49 PM   #28
Full time employment: Posting here.
 
Join Date: Mar 2005
Location: Punta Gorda, FL
Posts: 666
I wonder how many will benefit from a pay cut if they are still working? I sure would be watching my overtime if I was close to the cliff.

Sadly it looks like we will be just over. I wonder if I can get the wifes pension reduced a few thousand.
__________________
dm is offline   Reply With Quote
Old 04-01-2013, 07:12 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,457
Quote:
Originally Posted by dm View Post
I wonder how many will benefit from a pay cut if they are still working? I sure would be watching my overtime if I was close to the cliff.

Sadly it looks like we will be just over. I wonder if I can get the wifes pension reduced a few thousand.
Can you defer more income in a 401k?

or HSA? (I'm not totally sure whether a HSA works)
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 04-01-2013, 07:39 PM   #30
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Location: North Bay
Posts: 1,026
We have enough after-tax money that we can use during the pre-medicare years to keep below the $60k AGI target for ACA subsidy. I've got to think that they are not going to leave the all-or-nothing subsidy cutoff for long, though. I think that the subsidy AGI limit will be made more gradational within a year or two of the program's implementation.
__________________
scrinch is offline   Reply With Quote
Old 04-01-2013, 07:58 PM   #31
Full time employment: Posting here.
 
Join Date: Oct 2006
Posts: 525
If I retire at the end of 2013, DW will be nearing 60 and I will be 61, We will have no health insurance and no pensions. In fact, our only "income" would consist of approx $12,000 to $14,000 in 1099DIV and INT.

We set aside a CD ladder for the gap years until we reach Medcare at 65 and SS at 66. Once we know the details of ACA we will increase our "income" by converting TIRA funds to Roth IRA. I believe the idea is to roll over enough to, at a minimum, get us above the Medicaid level, but low enough to maximize any available ACA subsidy.

In our case I don't think it is a matter of a reduced buget. We will live the same basic lifestyle we do now drawing primarily from our savings.

Oh, and by the way, I have no problem what so ever taking full legal advantage of any health care subsidies that are available to me. I might save some bucks on HI but I will be paying more income taxes later because I won't be maximizing tax free TIRA to Roth IRA conversions. The government gets their cut one way or another.
__________________
***********
My motto is.... "a dollar saved is better than a dollar earned. I don't pay tax on the dollar I saved."
Tom52 is offline   Reply With Quote
Old 04-01-2013, 08:51 PM   #32
Recycles dryer sheets
 
Join Date: Oct 2012
Location: Salt Lake City, UT
Posts: 194
Quote:
Originally Posted by explanade View Post
What about those who withdraw enough for 3 years of expenses?

So one year with big income and then the next two years, nothing.

Can it be that easy to determine your income so that you get the subsidy?
That's my plan for both liquidating securities in the taxable account and removing funds from the tax advantaged accounts

Already have practice with this for lumping deductions.
__________________
UtahSkier is offline   Reply With Quote
Old 04-01-2013, 09:09 PM   #33
Dryer sheet aficionado
 
Join Date: Jan 2011
Posts: 38
Most definitely will take advantage of obamacare. Both my wife and I have health risks where it would be expensive to get healthcare on our own. But since uncle sam is willing to subsidize healthcare then it makes it affordable to retire early where otherwise I would have to wait until 65 and medicare...
__________________
chrisaukcam is offline   Reply With Quote
Old 04-01-2013, 09:50 PM   #34
Recycles dryer sheets
kmt1972's Avatar
 
Join Date: Mar 2013
Location: Scarsdale
Posts: 175
See

Obamacare makes it really easy for millionaires to retire early?

I assume a lot of us will be doing this.
__________________
"There are no solutions...there are only trade-offs." - Thomas Sowell

Looking to retire or semi-retire by 45 based on our net worth going to $6 million outside our house.
kmt1972 is offline   Reply With Quote
Old 04-01-2013, 10:51 PM   #35
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 1,364
If I retire in 2014 I'll get a pension of approximately 66K-68K. Interest, dividends, and capital gains from taxable accounts may add another $6K. That keeps us under the $76K MAGI cutoff point. We have over $300K in cash that we would then draw on to make up the difference for our planned $100K year expenses (which will be less with a lower insurance premium). That will likely get us the subsidy in most years before Medicare eligibility.
__________________
Current target FIRE date: Under negotiation, can happen anytime.
jollystomper is offline   Reply With Quote
Old 04-02-2013, 07:26 AM   #36
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,708
Quote:
Originally Posted by pb4uski View Post
Can you defer more income in a 401k?

or HSA? (I'm not totally sure whether a HSA works)
PB, I think (pretty sure) that 401K deductions do NOT count in MAGI calcs. It is your gross income. Be nice if it were.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is offline   Reply With Quote
Old 04-02-2013, 07:34 AM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,457
Quote:
Originally Posted by marko View Post
PB, I think (pretty sure) that 401K deductions do NOT count in MAGI calcs. It is your gross income. Be nice if it were.
401k contributions do reduce MAGI as it is used for Roth IRA eligibility. While they might make it different for Obamacare purposes, I think it is likely that it will be the same.

Also see What is Modified Adjusted Gross Income (MAGI)?

I think Michael is on top of this - any thoughts Michael?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 04-02-2013, 07:45 AM   #38
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 385
Quote:
Originally Posted by pb4uski View Post
401k contributions do reduce MAGI as it is used for Roth IRA eligibility. While they might make it different for Obamacare purposes, I think it is likely that it will be the same.

Also see What is Modified Adjusted Gross Income (MAGI)?
Interesting - that document says "As a final note, itís important to keep in mind that funds being converted from a traditional IRA to a Roth IRA do not count against your MAGI even though they may be taxable." - that sounds contrary to advice I was getting in another thread: ACA, MAGI and Roth conversions

Edit: Then I noticed in the comments on that article, someone points out this article which says Roth conversions do count. Oy.
__________________
JoeDreaming is offline   Reply With Quote
Old 04-02-2013, 07:53 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,457
In the definition below, it is AGI + foreign earned income excluded under section 911 + tax-exempt interest.

Quote:
c. Modified Adjusted Gross Income

Under the proposed regulations, modified adjusted gross income is adjusted gross income increased by amounts excluded from gross income under section 911 and tax-exempt interest a taxpayer receives or accrues during the taxable year. The 3% Withholding Repeal and Job Creation Act, Public Law 112–56 (125 Stat. 711 (2011)), which was enacted after the proposed regulations were published, amended the definition of modified adjusted gross income to include Social Security benefits (as defined in section 86(d)) not included in gross income under section 86. The final regulations reflect this amendment.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 04-02-2013, 08:02 AM   #40
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,487
Quote:
Originally Posted by kmt1972 View Post
See

Obamacare makes it really easy for millionaires to retire early?

I assume a lot of us will be doing this.
Would you mind providing a summary of the link or posting a snippet. That way members don't have to open it to see what it contains.
__________________

__________________
MichaelB is offline   Reply With Quote
Reply


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
Poll: Are You Staying Up For The Election Coverage? easysurfer Other topics 64 11-02-2012 10:38 PM
Poll REVISED: How many times do you eat out per week? Midpack Health and Early Retirement 27 06-26-2012 05:56 PM

 

 
All times are GMT -6. The time now is 06:41 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.