+1That definition is the same as what we are saying.
O-MAGI = Tax return AGI + any excluded foreign earned income + tax-exempt interest + any excluded SS
Good re-name of the magi.
+1That definition is the same as what we are saying.
O-MAGI = Tax return AGI + any excluded foreign earned income + tax-exempt interest + any excluded SS
$24K in premiums alone! Ouch! We pay approx. 1/2 that much for mom, dad and 1 kid.Same here... our family HI premiums are almost $24k pa, (mom, dad, 4 kids). If we gave up this very expensive non- subsidized health insurance could we use the exchanges and garner a subsidy?
jj
$24K in premiums alone! Ouch! We pay approx. 1/2 that much for mom, dad and 1 kid.
Get back to me in 2017 or so on that one.
I'm more concerned about what to do for 2014 and 2015 at this point.
See
Obamacare makes it really easy for millionaires to retire early?
I assume a lot of us will be doing this.
Will this last?
Probably not. If this loophole in the Affordable Care Act was a multi-million dollar windfall for some big corporation, our Congresscritters who are bought and paid for by Big Business would likely let it stand. But since it benefits largely middle-class retirees, expect it to be "fixed" in some way.
....I was considering dropping my retiree health insurance to qualify for this, but if Congress might remove the subsidies in a couple of years (for the not-poor), that's too risky. I can't get my retiree health insurance back once I drop it. I am going to sit on the sidelines and watch how this develops over the next couple of years.
me to .i'm 62 and this year is what it is.
2014 and 15 is my concern
If I retire at the end of 2013, DW will be nearing 60 and I will be 61, We will have no health insurance and no pensions. In fact, our only "income" would consist of approx $12,000 to $14,000 in 1099DIV and INT.
We set aside a CD ladder for the gap years until we reach Medcare at 65 and SS at 66. Once we know the details of ACA we will increase our "income" by converting TIRA funds to Roth IRA. I believe the idea is to roll over enough to, at a minimum, get us above the Medicaid level, but low enough to maximize any available ACA subsidy.
In our case I don't think it is a matter of a reduced buget. We will live the same basic lifestyle we do now drawing primarily from our savings.
Oh, and by the way, I have no problem what so ever taking full legal advantage of any health care subsidies that are available to me. I might save some bucks on HI but I will be paying more income taxes later because I won't be maximizing tax free TIRA to Roth IRA conversions. The government gets their cut one way or another.
But the cost is based on the Silver plan, ie subsidy remains the same but the gold plan will cost more.this is a misconception i keep reading. the subsidy is NOT for a silver plan. it is the plans that are coverd for subsidys have the Dollar value of the silver plan.
it is NOT the silver plan perse
Won't be a problem here now that I'm semi-FIREd, and 2014 is just in time. Unfortunately I understand we'll be based on 2012 salaries which are likely to be 2-3x what 2014's will be...
Well, yes, whatever I "overpay" based on 2012 income comes back, but you still have to spend the money up front.actually 2014 income is 2014 income.you may have to pay more upfront will get tax credits back
Well, yes, whatever I "overpay" based on 2012 income comes back, but you still have to spend the money up front.
So Medicaid (at least in some states) uses assets in part to determine eligibility, but Obamacare will only use current income? Is that right?John Galt 3 said:I'm in the same boat. I will only have about $10,000 annual income in 2014, from pension and interest (if still not working) and I will have to add about $5,xxx income to get enough income to qualify for subsidies. In my state they do not plan to "expand" medicaid for Obamacare, so I would still be under the existing state rules and would not qualify for medicaid due to my assets, even with my low income of $10,000 and therefore will have to add the $5,xxx to get up to the minimum income required for Ocare, and the subsidies.
So Medicaid (at least in some states) uses assets in part to determine eligibility, but Obamacare will only use current income? Is that right?
Also, IIRC AGI is after deductible IRA contributions and HSA contributions, so if one's O-MAGI is a bit over 400% FPL you could make additional IRA or HSA contributions to reduce your O-MAGI below 400% FPL (assuming you are eligible). Right?
you spoke about wifes insurance-you can only get tax credits for insurance bought from exchange
I find the OP question kind of funny in a way it is much harder for me to get above the threshold rather than under it.
I have to agree that this shifts the pay off the mortgage thread - less income needed if you don't have to service a mortgage... so the cost of the mortgage might need to include the cost of losing the health care subsidies.