Retire in your 30s and Get Subsidized Healthcare? I don't get it.

[Big_Hitter]

Quote:

Originally Posted by underwrite I know it's legal, but it really bothers me. Am I overreacting?

yes you are overreacting - no one who gets subsidized premiums "paid" into a system to get them regardless of age

[GrayHare]

Though history as the standard of living has increased so has leisure time. A concern in the current era is our standard of living is being financed through government debt growing along an unsustainable path. When that breaks, and it will, things won't be pretty. For now, apparently "kick the can and party on" is the rule.

[Bestwifeever]

Overreacting. And bloggers have been known to “enhance” their situations to get more clicks. You can be happy you upped his income a bit by going to the blog—keep it up and he’ll have to pay more in taxes!

[flintnational]

Quote:

Originally Posted by HNL Bill I have serious ethical issues with those who are sitting on major assets, but managing income in such a way as to game the ACA system (getting free government handouts while the national debt continues to climb). The lawyers who wrote ACA didn't foresee this legal loophole, or they thought it was so small, few would use it. IMHO, time for means testing for the ACA! I'm sure this will annoy those who are using the loophole, but seriously, why should America pay health expenses for those who retire early so that they can hold on their $? Doesn't really matter, as it's unlikely to last IMHO.

In our case, if we are "gaming" the tax system through ACA subsidies, we have a poor track record of tax avoidance. Cumulatively we have paid more taxes than the vast majority of Americans. Not complaining. I just don't like the cherry picking and the suggestion we pay taxes not owed.

Edit to add: We work very hard to stay healthy. Accordingly, we use very little health care. Who is subsidizing whom?

[aja8888]

Quote:

Originally Posted by daylatedollarshort Many corporations pay zero taxes, but root of good getting subsidized health care for his family bothers you?

Corporations provide jobs for people who get paid and they pay the taxes. Many corporations also subsidize health insurance (among other benefits) for the employees. Isn't that good?

Where, exactly, would this country be without corporations?

When I was an owner in a private corporation, our company paid no income tax (Sub S Charter). All profits were distributed to the owners and employees and we paid the federal, state and local income taxes (and we paid plenty).

[Huston55]

Quote:

Originally Posted by Golden sunsets I don’t think the range of amounts you are assuming are correct. Root of Good on his blog states that his 2018 monthly premiums average out to $40/mo for a Silver plan(As I recall) for a family of five and his Net Worth is now over $2,000,000. He has stated on his blog that he is prepared to make adjustments if his ACA subsidy disappears.

I see that now (you made me go back and review his blog). His income is significantly less than I assumed above. So, you recall correctly; he does state that the monthly premium for his family is ~$40/mo. But, in another place in his blog, his table shows his monthly premium should be slightly more than $100/mo based on his annual income. So, it’s pretty low in either case.

[97guns]

It’s a dog eat dog world and you take whatever you can whenever you can, I like his style

[Llep]

The portion of your health insurance that your employer pays is part of your compensation package for which you pay no federal, state or employment taxes. That is the employee’s healthcare subsidy.

[RunningBum]

Quote:

Originally Posted by underwrite It wouldn't bother me as much if he'd paid 'into the system' for a number of years

Oh hey, good, so there's an amount you can pay into the system and then it's ok? Because I paid over 1/2 mil in fed taxes in 1999. Am I good? Yeah, I take the subsidy, because I found as long as I don't do too big of a Roth conversion I'll still qualify. Wait, who are you to decide what's fair?

Yeah, you're overreacting.

[flintnational]

Quote:

Originally Posted by RunningBum Oh hey, good, so there's an amount you can pay into the system and then it's ok? Because I paid over 1/2 mil in fed taxes in 1999. Am I good? Yeah, I take the subsidy, because I found as long as I don't do too big of a Roth conversion I'll still qualify. Wait, who are you to decide what's fair? Yeah, you're overreacting.

Same here RB. Four months of our 2006 paid taxes will more than cover 10 years of our ACA subsidies. Yea, I am really gaming the system with my subsidies. I am sure the Feds will make the same deal with everyone that they made with you and me.

[joeea]

Quote:

Originally Posted by Golden sunsets He has stated on his blog that he is prepared to make adjustments if his ACA subsidy disappears.

That's a relief! I was getting worried!

[joeea]

Quote:

Originally Posted by RunningBum Because I paid over 1/2 mil in fed taxes in 1999. Am I good?

Well, sure. But what have you done for us lately?

[RunningBum]

Quote:

Originally Posted by joeea Well, sure. But what have you done for us lately?

Hey, it's not my fault if they didn't invest the money better!

[daylatedollarshort]

Quote:

Originally Posted by aja8888 Corporations provide jobs for people who get paid and they pay the taxes. Many corporations also subsidize health insurance (among other benefits) for the employees. Isn't that good? Where, exactly, would this country be without corporations? When I was an owner in a private corporation, our company paid no income tax (Sub S Charter). All profits were distributed to the owners and employees and we paid the federal, state and local income taxes (and we paid plenty).

Meet the 18 profitable companies that paid no taxes for over 8 years
https://www.cbsnews.com/news/meet-th...-over-8-years/

[MarieIG]

Quote:

Originally Posted by aja8888 Corporations provide jobs for people who get paid and they pay the taxes. Many corporations also subsidize health insurance (among other benefits) for the employees. Isn't that good? Where, exactly, would this country be without corporations? When I was an owner in a private corporation, our company paid no income tax (Sub S Charter). All profits were distributed to the owners and employees and we paid the federal, state and local income taxes (and we paid plenty).

Well put.

[Cut-Throat]

Quote:

Originally Posted by underwrite I know it's legal, but it really bothers me. Am I overreacting?

Your not overreacting, you're just overreacting about the wrong thing. There is plenty of other stuff that you should be overreacting about.

[gauss]

How much of a subsidy could he really be getting? He is only 33 yo. He has 40k of income.

Not much by my back of the envelope calculations.

-gauss

p.s. I have always been a guy who doesn't blindly follow conventional wisdom and keeps an eye out for opportunities. It has served me well over the years.

[JoeWras]

My grandmother got into SS contributing at 1% or 1.5% (40s and early 50s). She ended up drawing for over 30 years when benefits were increased greatly. She did nothing wrong. She was very subsidized.

[Dtail]

Well I am managing my MAGI for ACA subsidies. I don't feel the least bit guilty. There are many other tax subsidies for richer folks than me/collective us.
I am sure the % gaming the system is small overall and the laws would have been changed if it were so important to change them.
Many folks against the subsidies are ones who can't use the system due to where they are living or the makeup of their income.

[skipro33]

Someone in their 30's doesn't really need health insurance and if they do, it's for emergencies primarily and shouldn't cost much at all to begin with. However, ACA banks on that; a 30 year old will pay their 'fair share' and never or rarely need that health care, thereby subsidizing the older participants. If I were 30, I'd do all I could to keep my costs down and tell the older population they can pay their own health care and quit burdening me with their numerous doctor visits.