Preview of 2018 ACA plans is LIVE

[sheehs1]

duckcalldan..I am glad you guys got the large subsidy. Some of us can not get that as everything we make is "reportable" either on a W2, 1099, K1 or divi income in a taxable account and without a lot of tax deductions as well. The subsidy cliff for a single is around $48,000. It is just the way the cookie crumbles for some of us.

Sad when one thinks one should go into debt or use other measures to reduce income to get a subsidy...but tax law allows it that is for sure. (At least for now!)

 

[duckcalldan]

duckcalldan..I am glad you guys got the large subsidy. Some of us can not get that as everything we make is "reportable" either on a W2, 1099, K1 or divi income in a taxable account and without a lot of tax deductions as well. The subsidy cliff for a single is around $48,000. It is just the way the cookie crumbles for some of us.

Sad when one thinks one should go into debt or use other measures to reduce income to get a subsidy...but tax law allows it that is for sure. (At least for now!)

Yeah, we are lucky. 2 dependents makes a difference. We FIREd in mid-February so minimal wages. We have sizable dividends from our taxable accounts, that will make up close to half of our MAGI. The $6750 HSA deduction helps. I’ll do a Roth conversion of around $20K to maximize our 0% tax bracket. It’s nice to have the ability to massage the numbers to minimize taxes and maximize subsidies, plus I can always do a recharacterization if I convert too much Roth $.

 

[RunningBum]

duckcalldan..I am glad you guys got the large subsidy. Some of us can not get that as everything we make is "reportable" either on a W2, 1099, K1 or divi income in a taxable account and without a lot of tax deductions as well. The subsidy cliff for a single is around $48,000. It is just the way the cookie crumbles for some of us.

Sad when one thinks one should go into debt or use other measures to reduce income to get a subsidy...but tax law allows it that is for sure. (At least for now!)

Are you insinuating that some of us are not reporting all of our income in order to get the subsidy? I can promise you that's not my case, and I haven't heard that from others either, though they'd be stupid to admit that in a public forum. Most of us are doing things like minimizing Roth conversions, doing tax loss harvesting or at least selling off low gainers to limit income if we need to raise cash to live on, and perhaps dipping into HSAs and Roths for spending cash. Taking loans is another option. I hadn't really thought about that, but if the subsidy continues I may look at trying to take out a mortgage or HELOC to get me to Medicare age without having to sell off some of my higher gainers. We are making decisions that we'll have to pay for later down the line.

If that's not what you meant, perhaps be more careful about how you word things, because this sure looks like "congrats to you, but *I* report *all* of my income so *I* can't get the subsidy", as if the poster you refer to and other subsidy takers do not do that. I don't even agree with the "gaming the system" sentiment I often hear. It's really no difference from writing off deductions, deferring income with a 401K or IRA, or using any other method to reduce taxes.

 

[ivinsfan]

Are you insinuating that some of us are not reporting all of our income in order to get the subsidy? I can promise you that's not my case, and I haven't heard that from others either, though they'd be stupid to admit that in a public forum. Most of us are doing things like minimizing Roth conversions, doing tax loss harvesting or at least selling off low gainers to limit income if we need to raise cash to live on, and perhaps dipping into HSAs and Roths for spending cash. Taking loans is another option. I hadn't really thought about that, but if the subsidy continues I may look at trying to take out a mortgage or HELOC to get me to Medicare age without having to sell off some of my higher gainers. We are making decisions that we'll have to pay for later down the line.

If that's not what you meant, perhaps be more careful about how you word things, because this sure looks like "congrats to you, but *I* report *all* of my income so *I* can't get the subsidy", as if the poster you refer to and other subsidy takers do not do that. I don't even agree with the "gaming the system" sentiment I often hear. It's really no difference from writing off deductions, deferring income with a 401K or IRA, or using any other method to reduce taxes.

Where did that come from? Maybe you need a another cup of coffee. She's saying that if someone needs 50 K for their living expenses, if it's reportable on your income tax, no subsidy and if you take it out of after tax savings you get subsidy. It's obvious that we all need money to live on. Reportable in quotes simply means its counted as taxable income for the year question.

There's no way she is referring to people as cheaters for crying out loud.

 

[ShokWaveRider]

In out case we are not taking any money out of our IRA's, Not Taking SS.... Yet, and drawing down on our Post Tax Nut for daily expenses. That is how we are keeping our MAGI in ~Max Subsidy Territory.

 

[Fermion]

Our case was easy. We sold our paid off house for cash and now either rent or travel in our RV. That money provides us a way to live with zero MAGI but we choose to sell off enough stock investments to claw our way out of abject poverty and get to the 140% level so we can buy a silver plan.

This is probably available to a lot of people on here if they chose to sell their home, so it comes down to choices.

Of course if you have a $100k pension plus stocks throwing off $20k of dividends in taxable, you are never going to get a subsidy. I would rather be in your shoes though.

 

[explanade]

In out case we are not taking any money out of our IRA's, Not Taking SS.... Yet, and drawing down on our Post Tax Nut for daily expenses. That is how we are keeping our MAGI in ~Max Subsidy Territory.

What if your post-tax assets are generating dividends and cap. gains distributions which are high enough to get your AGI over the subsidy limit?

Our case was easy. We sold our paid off house for cash and now either rent or travel in our RV. That money provides us a way to live with zero MAGI but we choose to sell off enough stock investments to claw our way out of abject poverty and get to the 140% level so we can buy a silver plan.

This is probably available to a lot of people on here if they chose to sell their home, so it comes down to choices.

Of course if you have a $100k pension plus stocks throwing off $20k of dividends in taxable, you are never going to get a subsidy. I would rather be in your shoes though.

How would selling a house and renting lower your MAGI?

 

[ShokWaveRider]

What if your post-tax assets are generating dividends and cap. gains distributions which are high enough to get your AGI over the subsidy limit?

They are not, they are in Fixed income investments. Healthcare is the SINGLE MOST IMPORTANT thing in our life. We do EVERYTHING to ensure we get Good care at a sensible affordable price. I happily give up a few extra Dollars in income for a decent premium. I we made another $30k in income it would just go to healthcare premiums anyway, so it is a wash (in my books anyway).

 

[Fermion]

How would selling a house and renting lower your MAGI?

Assume you have no pension and you have a million in a 401K/IRA, and a million in a taxable account, plus a house worth $500,000.

If your taxable account is invested 100% in the S&P500 and you don't sell any of the stock for capital gains, all you get is about $20,000 a year in dividends. Your MAGI is $20,000

Say you need $50,000 to live on. You get the additional $30,000 from the monies you received when you sold your house but this money does not add to your yearly MAGI.

 

[RunningBum]

Where did that come from? Maybe you need a another cup of coffee. She's saying that if someone needs 50 K for their living expenses, if it's reportable on your income tax, no subsidy and if you take it out of after tax savings you get subsidy. It's obvious that we all need money to live on. Reportable in quotes simply means its counted as taxable income for the year question.

OK, that's probably it. Return of capital for spending is something I withdraw, not "make". What I make is income, all part of MAGI. An unfortunate interpretation of some careless wording.

 

[ivinsfan]

OK, that's probably it. Return of capital for spending is something I withdraw, not "make". What I make is income, all part of MAGI. An unfortunate interpretation of some careless wording.

I guess that's a "sorry about that"...I consider Sheehs1 a forum friend so gotta stick up for her

 

[sheehs1]

Where did that come from? Maybe you need a another cup of coffee. She's saying that if someone needs 50 K for their living expenses, if it's reportable on your income tax, no subsidy and if you take it out of after tax savings you get subsidy. It's obvious that we all need money to live on. Reportable in quotes simply means its counted as taxable income for the year question.

There's no way she is referring to people as cheaters for crying out loud.

Thank you ivinsfan. You are right and I was in no way inferring anyone was cheating. I was pointing out some of us "still" have reportable taxable "income", (both earned income and passive income), that does not come from our savings to fund our lives at the moment and that no amount of deductions will reduce our income below the subsidy cliff.

 

[sheehs1]

OK, that's probably it. Return of capital for spending is something I withdraw, not "make". What I make is income, all part of MAGI. An unfortunate interpretation of some careless wording.

I don't think it was careless wording...but hey, if you do, then I'll give you that.

What was misread or perhaps misinterpreted was the part I wrote about "reportable income" on a W2, 1099, K1, etc. which is considered income on the Federal Return for the year it was earned or received. My use of the word "reportable" is technically correct as it is "reportable income". Period. It was not meant to suggest others don't report. It had nothing to do with what "others do. I was "characterizing" the income. For example as opposed to withdrawals from a taxable account which are NOT reportable income.

 

[HadEnuff]

Any New Yorkers out there? I got on the NY State Of Health website and it is telling me that they don't want my new information until Nov. 15.

I thought Nov. 1 was the start of open enrollment.

 

[Ginny]

I have kept our income low to support a health insurance subsidy. It worked and I am getting a Kaiser bronze plan for $37.00 per month next year!! I had to have our friend and agent help me get through the site after I worked on it for 2 hours. I am thrilled!! It feels funny and good to be getting this great deal because we are in the 2 comma club. Amazing!! What a fantastic country!!

 

[jim584672]

Any New Yorkers out there? I got on the NY State Of Health website and it is telling me that they don't want my new information until Nov. 15.

I thought Nov. 1 was the start of open enrollment.

Albany, NY (November 1, 2017) – NY State of Health, the state's official health plan Marketplace, begins its 5th Open Enrollment Period today. Consumers can enroll in Qualified Health Plans now through January 31, 2018.

https://www.health.ny.gov/press/releases/2017/2017-11-01_nysoh_start_of_open_renewal.htm

 

[Mr._Graybeard]

I just enrolled DW and me with the help of my local broker. After a discussion of the relative plan benefits, we decided to stick with our HD bronze plan rather upgrade to gold. Our potential tax credit surpasses the bronze premium by a couple hundred a month, so we'll pay zero in premiums. It turned out that the gold plan would have cost us a couple hundred a month -- a sum about equal to our medical expenses last year.

 

[pb4uski]

I guess that's a "sorry about that"...I consider Sheehs1 a forum friend so gotta stick up for her

Perhaps, but I read her post similarly to the way RunningBum read it.... it was also bit off base because sheehs1 refers to tax deductions and itemized deductions don't enter into the O-MAGI calculations since it starts with AGI whcih is before itemized deductions.

 

[ivinsfan]

Perhaps, but I read her post similarly to the way RunningBum read it.... it was also bit off base because sheehs1 refers to tax deductions and itemized deductions don't enter into the O-MAGI calculations since it starts with AGI whcih is before itemized deductions.

Well no one is immune from posting something that can be confusing, but when did other posters start assuming the worst intentions without even asking the OP in a pleasant tone. It would be great world if we were all perfect all the time..being misunderstood is one thing, being accused of calling other people cheaters is another.

 

[Fermion]

It turns out all I had to do in Washington state was report a change in income of $0, which allowed me access to the consent form where I checked the box to allow them access to our tax returns.

I was then able to select a Silver plan with cheese and mayo, $550 max OOP for a couple with no kids, late 40s for $46 a month, which seems quite reasonable.

 

[scrabbler1]

Any New Yorkers out there? I got on the NY State Of Health website and it is telling me that they don't want my new information until Nov. 15.

I thought Nov. 1 was the start of open enrollment.

It is November 15th. I have a login ID and once I sign in, the first message I see is that I can't do anything for 2018 until November 15th.

"Please Read Carefully!

The NY State of Health website will soon allow you to renew or enroll in your coverage for NEXT year. If you would like to renew or enroll in your coverage for NEXT year, please come back after November 15th. If you make any changes to your information NOW, it will affect your coverage for THIS year. "

(emphasis theirs, not mine)

In the meantime (since 11/1), I have been getting 2018 plan info from my current company and getting my questions answered from them. But the fun stuff won't really begin until 11/15.

 

[HadEnuff]

Albany, NY (November 1, 2017) – NY State of Health, the state's official health plan Marketplace, begins its 5th Open Enrollment Period today. Consumers can enroll in Qualified Health Plans now through January 31, 2018.

https://www.health.ny.gov/press/releases/2017/2017-11-01_nysoh_start_of_open_renewal.htm

copy and pasted from the website:

Please Read Carefully!
The NY State of Health website will soon allow you to renew or enroll in your coverage for NEXT year. If you would like to renew or enroll in your coverage for NEXT year, please come back after November 15th. If you make any changes to your information NOW, it will affect your coverage for THIS year.


Typical of NY State to send out confusing and self-contradicting information.

 

[easysurfer]

Finally got my info packet from BCBS today with the suggested default plan since last year's plan is discontinued. Looking over, good thing I looked over and didn't just take the default as the suggested is no longer HSA eligible but I want one which is.

 

[audreyh1]

Finally got my info packet from BCBS today with the suggested default plan since last year's plan is discontinued. Looking over, good thing I looked over and didn't just take the default as the suggested is no longer HSA eligible but I want one which is.

Which state?

 

[easysurfer]

Which state?

IL.

There is a plan that is HSA eligible, but higher premium. I'll end up going with the eligible one.