Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-29-2013, 03:39 PM   #61
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Quote:
Originally Posted by brewer12345 View Post
From what I have read, the default will be based on your 2012 or 2013 MAGI. However, if your circumstances change (ERing, for instance), you can make a case to take the subsidies up front. It all comes out in the wash when you file taxes at year end in any case.
That is what Consumer's Union says. They have brochures they made up with the simplest ACA overviews in the galaxy -

https://sites.google.com/a/consumer....edit-brochure/
__________________

__________________
daylatedollarshort 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 09-29-2013, 04:54 PM   #62
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,856
Quote:
Originally Posted by daylatedollarshort View Post
That is what Consumer's Union says. They have brochures they made up with the simplest ACA overviews in the galaxy -

https://sites.google.com/a/consumer....edit-brochure/
Nice link. Thanks for posting it. Yes, it does appear that when we file our 2014 federal income tax return, it will reconcile any difference between the subsidy we declared we were entitled to take versus the subsidy we were actually entitled to take, kinda similar to the way our W-4 withholding form indicates how much income tax we want to have withheld versus the 1040 form indicating how much income tax was actually withheld.

At some point late next year (2014), will we have the chance to redo our declared subsidy for the following year (2015) the same way we are trying to figure it out now for 2014?
__________________

__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 09-29-2013, 05:21 PM   #63
Recycles dryer sheets
kmt1972's Avatar
 
Join Date: Mar 2013
Location: Scarsdale
Posts: 175
If one cannot stay below MAGI threshold to qualify for Obmamcare subsidies, one could also alternate years to extract capital gains that way at least one could get Obamacare subsidies every other year. Better than nothing.
__________________
"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 09-29-2013, 05:30 PM   #64
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,710
Quote:
Originally Posted by TromboneAl View Post
We get coverage that is a much, much better than our current plan. And it's with Anthem Blue Cross, which is widely accepted. Here are the details:

Is this an exchange plan because I understand for all levels of the exchange the oop is 6300. Also the subsidy only pays at the silver level
__________________
meierlde is offline   Reply With Quote
Old 09-29-2013, 06:45 PM   #65
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 3,417
Is there anything about alternating years with and without subsidies?

Or would that arouse suspicions about an 'engineered' MAGI?

Or drastic changes in MAGI? You were employed, then you retire and your income drops way down to qualify for subsidies the very next year.

I can just imagine exposes about 'millionaires receiving ACA subsidies.' There are certainly enemies of Obamacare and these kinds of anecdotes could be used to stoke more outrage.
__________________
explanade is offline   Reply With Quote
Old 09-29-2013, 06:57 PM   #66
Full time employment: Posting here.
 
Join Date: Jul 2007
Location: ST LOUIS
Posts: 993
Quote:
Originally Posted by meierlde View Post
Is this an exchange plan because I understand for all levels of the exchange the oop is 6300. Also the subsidy only pays at the silver level
I am low income and the subsidy pays the bronze for me. If I am understanding it right.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
rec7 is offline   Reply With Quote
Old 09-29-2013, 07:02 PM   #67
Recycles dryer sheets
kmt1972's Avatar
 
Join Date: Mar 2013
Location: Scarsdale
Posts: 175
Quote:
Originally Posted by explanade View Post
Is there anything about alternating years with and without subsidies?

Or would that arouse suspicions about an 'engineered' MAGI?

Or drastic changes in MAGI? You were employed, then you retire and your income drops way down to qualify for subsidies the very next year.

I can just imagine exposes about 'millionaires receiving ACA subsidies.' There are certainly enemies of Obamacare and these kinds of anecdotes could be used to stoke more outrage.
But that is bound to happen. They made Obamacare means-tested via income and not net worth. So you are going to have cases of high net worth and low income people that will get Obamacare subsidies. Besides, the entire thread called "Withdrawal Strategies With Obamacare" seems like all about a 'engineered' MAGI.
__________________
"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 09-29-2013, 07:06 PM   #68
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,664
Quote:
Originally Posted by brewer12345 View Post
From what I have read, the default will be based on your 2012 or 2013 MAGI.
The latest I've been hearing is that they've dropped the use of past years' AGI as an estimate of 2014 MAGI for ACA purposes. They're going to rely purely on the honor system (with estimates reconciled with reality at the end of the tax year, of course.)

I guess we'll know for sure on Oct. 1.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 09-29-2013, 07:15 PM   #69
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Onward View Post
The latest I've been hearing is that they've dropped the use of past years' AGI as an estimate of 2014 MAGI for ACA purposes. They're going to rely purely on the honor system (with estimates reconciled with reality at the end of the tax year, of course.)

I guess we'll know for sure on Oct. 1.

Works for me. I have always been a scrupulously honest taxpayer, but I was not looking forward to pleading my case due to a huge drop in MAGI from one year to the next.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 09-29-2013, 07:31 PM   #70
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,904
Quote:
Originally Posted by brewer12345 View Post
Works for me. I have always been a scrupulously honest taxpayer, but I was not looking forward to pleading my case due to a huge drop in MAGI from one year to the next.
Yes, that is good news. We will be having an order of magnitude drop in income when we ER.
__________________
Fermion is offline   Reply With Quote
Old 09-29-2013, 08:14 PM   #71
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
The income is estimated for 2014 but verified against exsiting and/or with additional documentation if requested.

http://www.cms.gov/CCIIO/Resources/F...n-8-5-2013.pdf

Blunt Wrong on Income Verification
__________________
rbmrtn is offline   Reply With Quote
Old 09-29-2013, 08:35 PM   #72
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by daylatedollarshort View Post
That is what Consumer's Union says. They have brochures they made up with the simplest ACA overviews in the galaxy -

https://sites.google.com/a/consumer....edit-brochure/
What a great simple brochure. It answer my question of which tax year do we use to determine the subsidy. I also understand how the subsidies work better than the calculator.

I was more or less on track to keep my 2013 MAGI under the Hawaii limit ($52,900) I had planned to reduce my 2013 by harvesting loss, now I guess I am going to pull in income into 2013 and push out my losses to 2014.

I am thinking that that the use of Jan options maybe the best way of ensuring that you stay under the limits.
__________________
clifp is offline   Reply With Quote
Old 09-29-2013, 08:55 PM   #73
Thinks s/he gets paid by the post
 
Join Date: May 2006
Location: Largo
Posts: 1,945
So is MAGI defined as it has always been defined?

If I have $20,000 in prior losses and I sell stock with a $20,000 gain, the effect on my MAGI is $0?
__________________
Buckeye is offline   Reply With Quote
Old 09-29-2013, 09:04 PM   #74
Thinks s/he gets paid by the post
 
Join Date: May 2006
Location: Largo
Posts: 1,945
Quote:
Originally Posted by kmt1972 View Post
If one cannot stay below MAGI threshold to qualify for Obmamcare subsidies, one could also alternate years to extract capital gains that way at least one could get Obamacare subsidies every other year. Better than nothing.
+1

Reminded me of bundling deductions.
__________________
Buckeye is offline   Reply With Quote
Old 09-29-2013, 09:44 PM   #75
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by explanade View Post

I can just imagine exposes about 'millionaires receiving ACA subsidies.' There are certainly enemies of Obamacare and these kinds of anecdotes could be used to stoke more outrage.
You can be sure when the political climate is correct, they will perp walk a multi-millionaire getting health insurance for $29 (subsidized by the middle class) on the nightly news. I guess this would help open the door to net worth scrutiny.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 09-29-2013, 10:00 PM   #76
Thinks s/he gets paid by the post
photoguy's Avatar
 
Join Date: Jun 2010
Posts: 2,301
Quote:
Originally Posted by Bikerdude View Post
You can be sure when the political climate is correct, they will perp walk a multi-millionaire getting health insurance for $29 (subsidized by the middle class) on the nightly news. I guess this would help open the door to net worth scrutiny.
How would a journalist know who was (a) getting the subsidy and (b) a multi-millionaire. This information would have to be volunteered by the recipient although I suppose in a country of 300M someone may do this.
__________________
photoguy is offline   Reply With Quote
Old 09-29-2013, 10:03 PM   #77
Full time employment: Posting here.
 
Join Date: Jul 2007
Location: ST LOUIS
Posts: 993
Quote:
Originally Posted by Bikerdude View Post
You can be sure when the political climate is correct, they will perp walk a multi-millionaire getting health insurance for $29 (subsidized by the middle class) on the nightly news. I guess this would help open the door to net worth scrutiny.
A person can be a multi-millionaire and get medicare with no problem. They can even get the cheapest rate if their income is low enough. Their are many programs that look at income only. But don't worry to much because many times to do this the multi-millionaire would lose more income than the benefits are worth.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
rec7 is offline   Reply With Quote
Old 09-29-2013, 10:16 PM   #78
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 3,417
I think it would be a good idea for those who are fired with substantial assets but still gets ACA subsidies to not crow about them.

Keep it on the down low.
__________________
explanade is offline   Reply With Quote
Old 09-29-2013, 10:37 PM   #79
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,904
Quote:
Originally Posted by explanade View Post
I think it would be a good idea for those who are fired with substantial assets but still gets ACA subsidies to not crow about them.

Keep it on the down low.
I agree with that, although it is probably ok for us to discuss on here...the gen pop who would be outraged don't for the large part manage to save or bother thinking much about retirement (and thus would not be reading anything on here).

I would be happy if they fix this "flaw" after they fix the other 18,000 things that are unfair in the tax code.
__________________
Fermion is offline   Reply With Quote
Old 09-29-2013, 11:44 PM   #80
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,664
Quote:
Originally Posted by rbmrtn View Post
The income is estimated for 2014 but verified against exsiting and/or with additional documentation if requested.

http://www.cms.gov/CCIIO/Resources/F...n-8-5-2013.pdf

Blunt Wrong on Income Verification
Those are helpful links. Thanks.
__________________

__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward 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


 

 
All times are GMT -6. The time now is 06:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.