Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-10-2015, 08:41 AM   #41
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,905
Quote:
Originally Posted by SCGamecock View Post
If the premium subsidy received is higher than it should have been, there are caps on the repayment amount for those between 100%-400% of the Federal Poverty Level (FPL).

https://news.leavitt.com/wp-content/...-Repayment.pdf

Those who received a premium subsidy based on estimated income do not need to repay if their actual income falls below 100% FPL.

Consumers Whose Income Drops Below Poverty Get Break On Subsidy Payback | Kaiser Health News
How many times can you "estimate" your income will be above 100% FPL and miss before they start denying you subsidies and forcing you onto Medicaid? Can you just re-estimate each year on the assumption the market will do better?
__________________

__________________
Fermion 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 01-11-2015, 09:39 AM   #42
Thinks s/he gets paid by the post
John Galt III's Avatar
 
Join Date: Oct 2008
Posts: 1,285
Quote:
Originally Posted by SCGamecock View Post
If the premium subsidy received is higher than it should have been, there are caps on the repayment amount for those between 100%-400% of the Federal Poverty Level (FPL).

https://news.leavitt.com/wp-content/...-Repayment.pdf

Those who received a premium subsidy based on estimated income do not need to repay if their actual income falls below 100% FPL.

Consumers Whose Income Drops Below Poverty Get Break On Subsidy Payback | Kaiser Health News
Thanks for finding and posting that article! I couldn't find anything about it.
__________________

__________________
John Galt III is offline   Reply With Quote
Old 01-11-2015, 10:32 AM   #43
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
I,m in the same boat.I retired last year in May. I receive a subsidy from the ACA.This year they want proof of income for 2015.If I do a Roth conversion to meet the income requirements for the year, will the statement from my financial institution fulfill the proof requirement the gov.needs? Thanks.Mike.
__________________
25ring is offline   Reply With Quote
Old 01-11-2015, 10:42 AM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,570
Quote:
Originally Posted by 25ring View Post
I,m in the same boat.I retired last year in May. I receive a subsidy from the ACA.This year they want proof of income for 2015.If I do a Roth conversion to meet the income requirements for the year, will the statement from my financial institution fulfill the proof requirement the gov.needs? Thanks.Mike.
I think so. I just spent 20 minutes with a healthcare.gov representative trying to figure out what I need to send in for proof of my '15 income. A statement would seem to be something they accepted.

I have to give you a YMMV as most of the conversation was me asking the rep what her last statement was.

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
__________________
MRG is offline   Reply With Quote
Old 01-11-2015, 10:55 AM   #45
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
Thanks MRG! I know what you mean.I was one of those that had a policy with CoOpportunity.I had to reapply for ins with another company since CoOp went belly up.The people at Healthcare.gov didn't know anything about it! I had to inform the person that the policy wasn't even offered on their own website anymore.I was hopeing to wait until the end of the year to create income,but I guess I'll have to do it now if I want the monthly subsidy instead of reconciling at the end of the year.Mike.
__________________
25ring is offline   Reply With Quote
Old 01-11-2015, 11:29 AM   #46
Thinks s/he gets paid by the post
John Galt III's Avatar
 
Join Date: Oct 2008
Posts: 1,285
Quote:
Originally Posted by 25ring View Post
Thanks MRG! I know what you mean.I was one of those that had a policy with CoOpportunity.I had to reapply for ins with another company since CoOp went belly up.The people at Healthcare.gov didn't know anything about it! I had to inform the person that the policy wasn't even offered on their own website anymore.I was hopeing to wait until the end of the year to create income,but I guess I'll have to do it now if I want the monthly subsidy instead of reconciling at the end of the year.Mike.
I applied online at the ACA website in December 2014 and they sent me a message asking for proof of income for 2015, due by March, 2015. But they went ahead and granted me my subsidy based on my estimate for 2015, even before I sent them any proof for 2015 income. I chose not to call them since that seems to just foul everything up. Much cleaner and neater just doing it all online yourself, and hoping for the best. I plan on doing a Roth conversion near the end of 2015 for the added income I need to qualify for ACA and avoid Medicaid. (But I just saw in another thread that I really won't have to do the Roth conversion since there apparently are no repercussions if one's income is less that he estimated!)
__________________
John Galt III is offline   Reply With Quote
Old 01-11-2015, 11:59 AM   #47
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 1,660
I'm going to be picking up ACA insurance, but am handling this by postponing the subsidy. I really do not have a great way to estimate and support the estimated income... or would consider the delta from last your too great (both of us retiring early this year @ 53). So, I'll pay the full rate and get the credit at the end of the year... if we qualify. Next year should be much more verifiable.
__________________
bingybear is offline   Reply With Quote
Old 01-11-2015, 12:05 PM   #48
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
John,My premium for Jan has been paid and the one for Feb with the new ins has been set up.The letter I received from HHS says I have 60days to submit proof of income for 2015. Last year I worked 4mos before retireing ,so income proof wasn't a problem.This year I have to create it from my tax deferred account,so I guess whether I do a Roth conversion now or later isn't really a big deal. I just want to be able to get the subsidy and cost sharing every month.Mike.
__________________
25ring is offline   Reply With Quote
Old 01-11-2015, 12:27 PM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,570
Quote:
Originally Posted by 25ring View Post
John,My premium for Jan has been paid and the one for Feb with the new ins has been set up.The letter I received from HHS says I have 60days to submit proof of income for 2015. Last year I worked 4mos before retireing ,so income proof wasn't a problem.This year I have to create it from my tax deferred account,so I guess whether I do a Roth conversion now or later isn't really a big deal. I just want to be able to get the subsidy and cost sharing every month.Mike.
Sounds like exact same letter I received. Last year I just clicked a box saying our income had changed. No other documentation was asked for. I retired half way into '13. So my estimate for 14 was substantially less.

This year they're starting to ask you for documentation with the threat of taking away subsidiary. I asked about cost sharing as well, but the rep told me she didn't know what cost sharing was. Good luck.

I'm sure just like last year this forum will lead all of us to the best possible solutions.

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
__________________
MRG is offline   Reply With Quote
Old 01-11-2015, 12:43 PM   #50
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
MRG, I'm going to contact my CPA tomorrow and maybe the Healthcare.gov people and see what they say. This stuff is new to pretty much everybody and we're on uncharted ground. I just want to say that this forum has been extremely helpful to me in navigating this healthcare quagmire and comforting as well.Thanks to all of the folks that contribute to this forum!--Mike.
__________________
25ring is offline   Reply With Quote
Old 01-11-2015, 01:11 PM   #51
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,345
I was given until February 2015 to submit proof of my 2015 income. I uploaded my 2013 1040, and what I hope is proof that my spouse and I are no longer employed. I then included a cover letter stating we were not employed and that our only income for 2015 would be from dividends and interest only and I included the estimated amount which was close to what it was in 2013.

I sent it early enough so that if it doesn't satisfy them I can include end of year brokerage statements for 2014.

My approach was to take the easy way first and see if they will accept it.
__________________
Helen is offline   Reply With Quote
Old 01-11-2015, 02:30 PM   #52
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,864
The NY Marketplace was never satisfied with my 2014 income estimates I sent them. I sent them my 2013 year ending statements and I got a letter every month from them telling me the information I sent them was inadequate or insufficient or something like that. My type of income (dividends and cap gain distributions) was not among the types of income listed. I wasn't seeking an advance premium subsidy so I didn't care much; I'd figure everything out at the end of the year.


I finally called the Marketplace in April or May and told the rep what was going on. He told me to ignore the letters and they would probably stop coming after a while (they did stop). As long as they send out a Form 1095-A which verifies that I bought a policy through the Marketplace that will be fine. That makes me eligible for the subsidy I will calculate on my 2014 federal income tax return to offset some of my taxes due, as I had no taxes withheld, only some estimated taxes paid.


I won't bother sending them any year-ending 2014 statements because, once again, I won't be seeking any advance premium subsidy. My main goal is to make sure my income stays below ~$46,000 so I continue to qualify for a subsidy. I barely qualified for one for 2014 because I some unexpected cap gains distributions in December which used up most of my income cushion.
__________________
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 offline   Reply With Quote
Old 01-14-2015, 09:35 AM   #53
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
Thought I'd give an update. Called Vanguard to do a Roth conversion.Told the rep what I was trying to accomplish with the ACA.He started laughing and said that he was right behind me in age [59] and looking to do the same himself.Healthcare.gov while polite,don't really seem to know anything other than what's written down in front of them.Hopefully my conformation statement along with a cover letter will satisfy their 2015 income proof.Stay tuned,Mike.
__________________
25ring is offline   Reply With Quote
Old 01-15-2015, 08:25 AM   #54
Full time employment: Posting here.
 
Join Date: Oct 2006
Posts: 525
Since I originally asked the questions I thought I would give an update...on January 7, I mailed as much documentation as I had available to verify my expected 2015 MAGI. As suggested I sent a cover letter detailing the various types of anticipated incomes, with referenced attachments. In all there was probably 30 pages so I did not think I would have much success trying to pdf. a file that large and then attempt to upload it to healthcare.gov as some here have indicated worked for them.

I found it strange that instructions said that to be accepted, supporting documents must include the home address as well as our name. Many of the documents including statements from Vanguard and Ameriprise do not show our home address. I hope this does not become a problem.

I will give an update as soon as I hear back from Dept. of Health & Human Services.



Quote:
Originally Posted by Tom52 View Post
I retired in 2014 and had employee health insurance for most of the year, however, I will be without health insurance starting January 1, 2015. So this is my first experience with ACA.

I applied for subsidized ACA health insurance for 2015 and used a guestimate of 2015 MAGI of $33,000. I will have no W-2 wages in 2015. My income will come from a combination of 1099 income, and an inherited annuity. It is difficult to document all of this estimated 2015 MAGI because more than half of the $33,000 will be coming from assets via inheritance received mid 2014.

I received a letter from Dept. of Health and Human Services advising that I needed to document my estimated MAGI number, ($33,000) by mid February. Consequence of not completing this is a loss of a substantial subsidy. I may or may not have some of the 1099s that I could submit, but for the majority of the MAGI number I will not have any formal documentation to verify income. I understand that 1099s etc are not required to be sent before mid February.

I can document loss of W-2 but how do I quantify where other income comes from? About 2/3 of the $33,000 was not in my possession till the second half of 2014 and therefore did not appear on my 2013 tax return.

Anyone have any ideas what form of income documentation will be acceptable to Health and Human Services so that I can maintain my subsidy?
__________________
***********
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 01-15-2015, 07:15 PM   #55
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
Today I got an email from HealthCare.gov that I have a message waiting on my account. I logged in and it's the 1095-A form. It's got all the info needed to file taxes.

FYI, the last 2 pages are how to get help in other languages, so you don't need to print them.
__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 01-15-2015, 09:43 PM   #56
Recycles dryer sheets
NoMoreJob's Avatar
 
Join Date: Feb 2012
Posts: 169
I like your motto Tom52!
__________________
NoMoreJob is offline   Reply With Quote
Old 01-21-2015, 07:42 AM   #57
Full time employment: Posting here.
 
Join Date: Oct 2006
Posts: 525
I got my letter from Health and Human Services yesterday. My projected 2015 income has been accepted. One less thing to worry about, but I was also recently advised that the insurance company I purchased thru the ACA is in receivership so I will now have to change to a different insurer to be eligible for the subsidy. Problem is there is only one remaining insurer that offers insurance thru healthcare.gov. Now, to pour salt in the wound there is only one HSA eligible plan. It is a bronze plan. Checked for doctors within 20 miles of my zip code and find there are none.

I am really disappointed in this whole process so far.

Quote:
Originally Posted by Tom52 View Post
Since I originally asked the questions I thought I would give an update...on January 7, I mailed as much documentation as I had available to verify my expected 2015 MAGI. As suggested I sent a cover letter detailing the various types of anticipated incomes, with referenced attachments. In all there was probably 30 pages so I did not think I would have much success trying to pdf. a file that large and then attempt to upload it to healthcare.gov as some here have indicated worked for them.

I found it strange that instructions said that to be accepted, supporting documents must include the home address as well as our name. Many of the documents including statements from Vanguard and Ameriprise do not show our home address. I hope this does not become a problem.

I will give an update as soon as I hear back from Dept. of Health & Human Services.
__________________
***********
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 01-21-2015, 09:00 AM   #58
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
Quote:
Originally Posted by Tom52 View Post
I got my letter from Health and Human Services yesterday. My projected 2015 income has been accepted. One less thing to worry about, but I was also recently advised that the insurance company I purchased thru the ACA is in receivership so I will now have to change to a different insurer to be eligible for the subsidy. Problem is there is only one remaining insurer that offers insurance thru healthcare.gov. Now, to pour salt in the wound there is only one HSA eligible plan. It is a bronze plan. Checked for doctors within 20 miles of my zip code and find there are none.

I am really disappointed in this whole process so far.
Oh boy! Another CoOpportunity policy holder like me! Good thing I'm retired because this is turning into a full time job.
__________________
25ring is offline   Reply With Quote
Old 01-29-2015, 10:13 PM   #59
Dryer sheet aficionado
2retireearly's Avatar
 
Join Date: Jul 2011
Location: Richmond, VA
Posts: 41
I went through this confusion last year as I retired 12/2013. What i did was this in 2014, to prove my subsidy need: I downloaded (and mailed) my Congrats on your Retirement Letter from my Employer. And I downloaded (and mailed) the small amount ($25k) I removed from my 401k (I could remove as I retired at 57). So for 2014 25k was my taxable income (I used cash for the rest of my living expenses). That was approved. All was good. For this year, 2015, I just downloaded (and mailed) the document showing 25K from my 401k as my taxable income...as also I will use cashfor the rest of my living expenses. That's is. (for the person who asked about his ROTH..that isnt taxable income, so do not show them this!). Only show your taxable income..not what you have used to live. All pretty easy...
__________________
2retireearly is offline   Reply With Quote
Old 01-30-2015, 10:35 PM   #60
Confused about dryer sheets
 
Join Date: Feb 2014
Location: lincoln
Posts: 8
Quote:
Originally Posted by 2retireearly View Post
I went through this confusion last year as I retired 12/2013. What i did was this in 2014, to prove my subsidy need: I downloaded (and mailed) my Congrats on your Retirement Letter from my Employer. And I downloaded (and mailed) the small amount ($25k) I removed from my 401k (I could remove as I retired at 57). So for 2014 25k was my taxable income (I used cash for the rest of my living expenses). That was approved. All was good. For this year, 2015, I just downloaded (and mailed) the document showing 25K from my 401k as my taxable income...as also I will use cashfor the rest of my living expenses. That's is. (for the person who asked about his ROTH..that isnt taxable income, so do not show them this!). Only show your taxable income..not what you have used to live. All pretty easy...
Just received my letter from HHS stating that no further action is needed.My Roth conversion confirms my eligibility for income for 2015. A Roth withdrawl isn't taxable but a Roth conversion from an TIRA is. FWIW --Mike
__________________

__________________
25ring 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
ER Taxable income, and ACA MAGI fh2000 FIRE and Money 40 05-22-2014 12:31 AM
How Cap Gains/Carryover Losses impact MAGI under ACA NoMoreJob FIRE and Money 4 10-17-2013 12:59 PM
Cap Gain Impact on MAGI under ACA? NoMoreJob Health and Early Retirement 3 10-04-2013 12:41 PM
ACA, MAGI and Roth conversions JoeDreaming FIRE and Money 26 04-01-2013 04:46 PM
Senators resolve airline pension fight newellcr Young Dreamers 8 10-07-2005 12:39 PM

 

 
All times are GMT -6. The time now is 04:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.