FANOFJESUS
Thinks s/he gets paid by the post
Where can I find out of pocket maxes on a bronze plan?
Where can I find out of pocket maxes on a bronze plan?
Just FYI for those thinking about minimizing income....HSA contributions (to the limits allowed by law) DO reduce your ACA MAGI. I don't know about all exchanges but ours does include HSA qualified plans.
California has much of the plan information already posted on the state exchange site. If your does not, you can try the Kaiser calculator. It has rate information by state now.
What about the unrealized dividends and capital gains distributions from your taxable accounts? Even if you don't redeem a dime out of those taxable accounts, every year, you have to pay taxes for the dividends and cap gains distributions. Those can certainly make your AGI or MAGI go above the limits, can't they?
Has anyone determined if Roth IRA distributions will count toward MAGI ?
Has anyone determined if Roth IRA distributions will count toward MAGI ?
They are tax free so don't count towards MAGI, however IRA to ROTH conversions are taxable and count towards MAGI, I believe.
Roth conversions are definitely included in MAGI.
California has much of the plan information already posted on the state exchange site. If your does not, you can try the Kaiser calculator. It has rate information by state now.
Can you give an example of something that could be an "unrealized dividend".
Ha
I was wondering the same myself.
Yes, dental, vision and prescriptions in addition to medical care......... from what I have read it appears you can use those for dental and vision expenses? ...........
What kind of coverage do you get for $29.00 & is it widely accepted ?
MAGI only counts income, so unrealized gains are not included. Dividends paid and cap gains realized, plus cap gains distributions all count towards MAGI.
From above Medicaid to ~400% FPL the net effective tax rates range from 16% to 20%. If I add another $10k above 400% FPL it increases to 24% due to the loss of Obamacare, but if I go to the top pf the 15% bracket it grades back down to 21% as the impact of the Obamacare cliff is spread over more income.
Can you explain this a bit more? How is the effective tax rate 16% at 133% of FPL? For a married couple making that little, the effective federal tax rate would be more like 5% or 10%.
But by the time you get to RMDs, you should be on Medicare anyway.
Note that part B and part D of medicare are also means tested. So if you get significant RMD's you will pay more. In one sense then we have a pay me now or pay me later situation. (For singles the limit is 85k now but I do expect it to fall to about 50k soon). For married double the amounts, from 85 to 107k its about $40/month more, then from 107 to 160 its 100, and from 161 to 214 its 170 and above 214k its 240 a month additional premium.
Sure, it is a bit convoluted. When I say "tax' rate, I'm really referring to more than taxes - I'm referring to the net change in federal and state taxes, Obamacare health insurance subsidies and state property tax relief compared to the change in income.
Yes, but the question was about manipulating taxable income to qualify for the ACA subsidies.