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Old 10-06-2013, 11:08 PM   #21
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Instead of a Roth conversion maybe it would make the application process clearer
to just take an outright IRA distribution and record that as retirement income.
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Old 10-07-2013, 02:39 PM   #22
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22140 AGI, Doesn't that put you into Medicaid land?
Apparently not.

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Instead of a Roth conversion maybe it would make the application process clearer to just take an outright IRA distribution and record that as retirement income.
I could consider doing it that way this year, since I'm now 60 years old.

Let's say our expenses are 60K per year.

Method 1:
Do 20K Roth rollover
Use 60K from already-taxed accounts

Method 2:
Take 20K from IRA
Use 40K from already-taxed accounts.

Both should be equivalent in terms of the health care app, but the gubmint might understand method 2 better.

Method 1 -- better taxwise in the long run??
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Old 10-07-2013, 03:31 PM   #23
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Method 2:
Take 20K from IRA
Use 40K from already-taxed accounts.

Both should be equivalent in terms of the health care app, but the gubmint might understand method 2 better.
Probably, IRA can distribute $1667 to a checking account monthly.
Federal application has a box for retirement accounts and a blank space
to add monthly. Should be simple to understand.

On the other hand a Roth conversion will reflect the same $20000 as a taxable distribution on the 1040.
Moving $1667 from a money market account to checking may satisfy the same retirement income box.

How would you handle a situation where the $3000 carryover loss exceeds
all dividends and interest received.
Would you record the divs and int and the the loss or leave it all out since there is no net investment income.

In either case line 37 will differ from info on ACA form.
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Old 10-07-2013, 06:28 PM   #24
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22140 AGI, Doesn't that put you into Medicaid land?
It would if you got your income down a couple of G's....

"The Affordable Care Act proposes to make changes that affect the eligibility of certain individuals for receiving Medicaid coverage. If put into effect, all individuals from ages 19 to 65 whose income is at or below 133 percent of the federal poverty level for the pertinent year will be eligible to receive Medicaid."

So based on the chart below if you make less than $20,628 ($15,510 x 133%) you should be eligible for Medicaid. Now whether you want to enter that pool is an entirely different discussion.

2013 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES
AND THE DISTRICT OF COLUMBIA
Persons in family/householdPoverty
1 $11,490
2 15,510
3 19,530
4 23,550
5 27,570
6 31,590
7 35,610
8 39,630
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Old 10-07-2013, 07:55 PM   #25
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Medicaid and CHIP Eligibility Levels | Medicaid.gov

The links in this link break down Medicaid income levels by state.
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Old 10-07-2013, 11:20 PM   #26
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22140 AGI, Doesn't that put you into Medicaid land?
I was thinking the same thing. In the same WSJ article already reference in the thread, it said that they were probably going to have to call people back and tell them they were not eligible for a health plan meaning they would be routed to Medicaid. So double check your income levels with your state for anyone that doesn't want that happen.
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Old 10-07-2013, 11:24 PM   #27
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Medicaid and CHIP Eligibility Levels | Medicaid.gov

The links in this link break down Medicaid income levels by state.
Not sure I understand the "Other Adult" column for some states. Where the state did not expand their Medicaid roles the income is "0". Don't know what that means.
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Old 10-07-2013, 11:52 PM   #28
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I was thinking the same thing. In the same WSJ article already reference in the thread, it said that they were probably going to have to call people back and tell them they were not eligible for a health plan meaning they would be routed to Medicaid. So double check your income levels with your state for anyone that doesn't want that happen.
Wonder what happens if you estimate a little high on your income and after all is said and done at tax time you run short and are under the limit, especially after a year of being in a non-medicaid plan.
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Old 10-08-2013, 06:34 AM   #29
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Not sure I understand the "Other Adult" column for some states. Where the state did not expand their Medicaid roles the income is "0". Don't know what that means.
Other adults still won't qualify for Medicaid in those states - unless they are disabled and on SSDI. I think being disabled was the only reason an adult under 65 could qualify before states were asked to expand the program.
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Old 10-08-2013, 08:23 AM   #30
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I know/knew very little about Medicaid. Good question homestead as that can happen for all sorts of reasons including loss of job, death of a family member. I'm sure they will make allowances or have some sort of in depth reconciliation process.

Thank you tinlizzy. I looked it up hoping to learn a bit more about it. If I am reading this right, looks like individuals or individual childless couples can be covered in states that expanded their medicaid roles, if their income is low enough. Prior to this, the Supreme Court struck down the medicaid mandate, allowing states to decide on expansion themselves. Some did, some didn't. I think we all knew that. Depends on where you live.

Don't know how current this link is:

ObamaCare Medicaid Expansion
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Old 10-08-2013, 11:15 AM   #31
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Thank you for that link, tinlizzy. It explains why, if I put our income for next year at 140% FPL (will be Roth conversions for us, too) WA state says we qualify for subsidies but our son, 16, will get a separate Medicaid plan. We would rather have him on our policy, so I'm not sure how to figure this one out...
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Old 10-08-2013, 03:15 PM   #32
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What would the advantages/disadvantages be for medicaid versus a subsidized regular health insurance plan?
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Old 10-08-2013, 05:17 PM   #33
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As regards our son, just the more limited availability of providers. His current doc is not accepting new Medicaid patients. However, he's a pretty healthy kid, so we might just go with Medicaid and he will age out in two years, at 18. We can add him to our plan then.
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Old 10-09-2013, 10:31 AM   #34
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What would the advantages/disadvantages be for medicaid versus a subsidized regular health insurance plan?
With standards in place for minimum essential health benefits and how cost sharing is implemented, another thing to look for when comparing plans is network size and scope. There may be important differences among the networks when comparing Medi-Cal, the exchange silver plan with cost sharing, and other exchange plans. Lower cost plans often have more restricted networks.
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Old 10-12-2013, 06:55 AM   #35
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What would the advantages/disadvantages be for medicaid versus a subsidized regular health insurance plan?
Maybe a good topic for a new thread? I finally was able to enter my information in to the Federal exchange site (WV uses that site) and given our low income only from investments, I was told I qualified for Medicaid and would be sent more information via regular mail.

We have current health coverage that we pay for ourselves so will be interested to see how this will compare to what we purchase already. Basically, we participate in the group coverage provided by my wife's former employer but don't receive anything towards the cost. For purposes of the ACA, I've assumed that we don't have coverage from an employer since we are both retired and not receiving any payments for health care?
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Old 10-12-2013, 09:13 AM   #36
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Maybe a good topic for a new thread? I finally was able to enter my information in to the Federal exchange site (WV uses that site) and given our low income only from investments, I was told I qualified for Medicaid and would be sent more information via regular mail.

We have current health coverage that we pay for ourselves so will be interested to see how this will compare to what we purchase already. Basically, we participate in the group coverage provided by my wife's former employer but don't receive anything towards the cost. For purposes of the ACA, I've assumed that we don't have coverage from an employer since we are both retired and not receiving any payments for health care?
Not sure. Maybe Michael can speak to this. I thought if you had any employer sponsored health care regardless of whether they pay any percentage it preempted you from a subsidy on the exchange. I think they were assuming an employer paid some portion. There is always the credit on your taxes if you pay more than 10% for premiums I suppose. But I don't yet know how that works either. Meaning I don't know if that is just premiums or total out of pocket for all medical expenses.

One question I have about medicaid under the ACA is I thought in order to receive medicaid a person couldn't have much in the way of assets. Or has that been changed also. Perhaps we do need another "topic" on the medicaid piece of this.
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Old 10-12-2013, 09:32 AM   #37
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Everyone is free to start a new thread. This paper details how eligibility is determined for tax credits and premium assistance. http://www.healthreformgps.org/wp-co...redit-7-18.pdf

Generally speaking, an employee is still eligible for exchange assistance if the employer coverage is not affordable or does not meet minimum essential coverage standards.
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Old 10-12-2013, 02:57 PM   #38
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Maybe a good topic for a new thread? I finally was able to enter my information in to the Federal exchange site (WV uses that site) and given our low income only from investments, I was told I qualified for Medicaid and would be sent more information via regular mail.

We have current health coverage that we pay for ourselves so will be interested to see how this will compare to what we purchase already. Basically, we participate in the group coverage provided by my wife's former employer but don't receive anything towards the cost. For purposes of the ACA, I've assumed that we don't have coverage from an employer since we are both retired and not receiving any payments for health care?
My big question was also retiree insurance offered thru a former employer and I found this dated yesterday.
Employer-sponsored plans

Eligible employer plans that meet the minimum essential coverage requirements include the following:

Coverage offered to former employees, such as retiree coverage under a group health plan or COBRA (however, those who are eligible but not enrolled in such coverage may disregard their eligibility in determining whether they qualify for an exemption, premium tax credits or cost-sharing reductions for coverage offered through the exchanges)

IRS Final Rules: Individual Mandate and Minimum Essential Coverage - Towers Watson
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Old 10-12-2013, 03:16 PM   #39
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Eligible employer plans that meet the minimum essential coverage requirements include the following:

Coverage offered to former employees, such as retiree coverage under a group health plan or COBRA (however, those who are eligible but not enrolled in such coverage may disregard their eligibility in determining whether they qualify for an exemption, premium tax credits or cost-sharing reductions for coverage offered through the exchanges)

IRS Final Rules: Individual Mandate and Minimum Essential Coverage - Towers Watson
I'm more confused now. Before October Megacorp had sent out forms that said their plan was ACA compliant. I have COBRA but this form suggested since I have terminated service (with Megacorp) I was not eligible. I must be misunderstanding something.

MRG
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Old 10-12-2013, 06:58 PM   #40
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I'm more confused now. Before October Megacorp had sent out forms that said their plan was ACA compliant. I have COBRA but this form suggested since I have terminated service (with Megacorp) I was not eligible. I must be misunderstanding something.

MRG
I took the above ruling to mean that those plans must meet the minimum essential coverage requirements if they are offered to former employees but if, as a former employee, you are not enrolled (even though you may be eligible), you may seek insurance/subsidies on the exchanges.
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