2018 Capital Gain Dist will affect my ACA costs

[ivinsfan]

If you know of something that's immoral that I've taken advantage of, I'd be happy to know about it. As to the bragging, it looks like that to me - as in, look how much I've saving with the ACA subsidy and I need advice on how I can avoid the cliff and might have to pay for HI.

And in fact instead of the word bragging a very few of the posters here who work their ACA subsides down to the last dollar for free HI almost come across as "gloating" IMO anyway..

and when the full payers inevitably feel a little gypped by the way these rules are written the gloaters respond, What's your problem get over it, it's legal, without realizing their posts come across as Goodie for me, look what I got...too bad you don't get any, but I just followed the rules.

As yes gloating can be Oh my, all my stocks did so well, I'm going to over the cliff, what shall I do to fix that..?

 

[Fedup]

And in fact instead of the word bragging a very few of the posters here who work their ACA subsides down to the last dollar for free HI almost come across as "gloating" IMO anyway..

and when the full payers inevitably feel a little gypped by the way these rules are written the gloaters respond, What's your problem get over it, it's legal, without realizing their posts come across as Goodie for me, look what I got...too bad you don't get away, but I just followed the rules.

As yes gloating can be Oh my, all my stocks did so well, I'm going to over the cliff, what shall I do to fix that..?

You mean the guy with $5 million and was trying to get more subsidy. I think he’s invested all in CDs. Hard to hide with CDs.

I don’t get any subsidy and don’t try to hide my asset for Medicaid LTC. My hope is the above will look down kindly on me. Maybe my kids will be gazillionaires.

 

[sengsational]

FWIW I, I would buy a similar fund to hold for the 31 days, as suggested. I wouldn't worry too much about matching the fund precisely since in such a short amount of time, they will move in lock-step. Just look at the ex-dividend date and if OK, buy it. I'd do it on the same day with uncleared funds so I wasn't ever out of my target asset allocation.

 

[beowulf]

*The ACA subsidies are premium tax credits. Taxes were raised and new taxes were added to pay for the premium tax credits (ACA subsidies). The new taxes and tax credits are administered by the IRS and are reported on tax forms. Those that do not believe ACA subsidies are tax policy are mistaken.

I'm not sure I understand what you are saying. The subsidies have no connection to the premiums for ACA plans that unsubsidized people pay. What the above says is that the subsidies are coming from taxes we pay (where else would they come from?). People who receive the subsidy don't actually see any of that money - it goes directly to the ACA insurer. If they don't have a fully subsidy, they pay the difference.

In essence, everyone pays for the subsidies that some receive and actually NEED to survive. So, in addition to my nearly $10K annual Medicare and gap insurance bill, I'm contributing to people with millions of dollars in assets who keep their actual MAGIs low enough to qualify for subsidies. Not sour grapes - just stating a fact that should be clear to all.

And, dare I say it? Many of these people on this forum who are taking advantage of subsidies now were probably vehemently opposed to the concept of the ACA as government intrusion into healthcare before it passed and they realized they could use it to their personal benefit. Maybe I'm wrong, but I don't have time to search 12 or more year old posts. If you were in favor of the ACA all along, you have my apologies.

Each to his or her own. I have the same right to express my opinion as anyone else here. Whether I agree with you or not.

 

[beowulf]

And in fact instead of the word bragging a very few of the posters here who work their ACA subsides down to the last dollar for free HI almost come across as "gloating" IMO anyway..
and when the full payers inevitably feel a little gypped by the way these rules are written the gloaters respond, What's your problem get over it, it's legal, without realizing their posts come across as Goodie for me, look what I got...too bad you don't get away, but I just followed the rules.
As yes gloating can be Oh my, all my stocks did so well, I'm going to over the cliff, what shall I do to fix that..?

I like the term "gloating" rather than bragging. Much more on point.

Thanks, ivinsfan.

 

[RunningBum]

If you know of something that's immoral that I've taken advantage of, I'd be happy to know about it. As to the bragging, it looks like that to me - as in, look how much I've saving with the ACA subsidy and I need advice on how I can avoid the cliff and might have to pay for HI.

"I need advice" equals bragging. Oh boy. I'm done with you.

 

[pb4uski]

What flintnational is saying, and is correct about, is that technically ACA subsidies are tax credits that one gets for buying ACA health insurance if their income is lower that certain specified hurdles. That is why they call them premium tax credits.

 

[pb4uski]

OP, do you have any earned income? If so, one way to avoid the cliff might be to make some deductible IRA contributions for the amount that you're over the cliff.

 

[beowulf]

"I need advice" equals bragging. Oh boy. I'm done with you.

Thank you for the compliment. It does equal gloating (I've abandoned the term bragging) when someone with multi-million dollar assets says "I need advice on how to avoid the ACA cliff so I can receive a government subsidy I may not need, is really meant for others, but through a loophole I can take advantage of."

 

[beowulf]

OP, do you have any earned income? If so, one way to avoid the cliff might be to make some deductible IRA contributions for the amount that you're over the cliff.

I was under the impression that the OP was retired. If so, he can't make any IRA contributions without earned income. If he was drawing a salary, it would have to be extremely small for him to not crash over the cliff.

 

[pb4uski]

Actually, if I recall correctly, the cliff is about $64,000 of income a year for a couple. I'm not sure what it is for a single, but if somebody has a part-time job they could have some pretty substantial earned income and still be under the cliff.

 

[beowulf]

About $47 or $48K for a single. A barista at Starbucks doesn't earn that much . Don't know much about the OP, so it's all supposition.

 

[Rianne]

Was for the ACA from the beginning and from recent articles I've read it's getting stronger. HI companies are coming back into the fold as they see profits. We could start a discussion about what the insurance market was like before the ACA. It was more expensive than the current ACA. Your income did not matter and you were not protected with pre existing and max out of pocket. Unless you had a Phd in HI, you didn't know what you were buying until something catastrophic happened.



I understand the opposition to ACA, but the alternative was a nightmare. Where's the better plan?

 

[Fedup]

I think pre-ACA there was a limit too. Ridiculous limit such as $1 million limit like one of my employer’s plan had.

 

[Rianne]

Suggest reading the thread in FAQ archive from 2007 "Buying Private Insurance."

 

[foxfirev5]

Actually, you are 100% wrong... only because there is no such thing as Medicare LTC as you wrote... it is Medicaid LTC.

Yes, I do draw the line at Medicaid planning.... mostly because of the magnitude of the ill-gotton gains... probably over $70k+ a year of benefit vs ~$4k on average for ACA subsidies based on HHS data.

The other difference is at the end of the day the beneficiaries of the Medicaid planning ploy is the person's heirs and it is done directly to benefit the person's heirs... whereas for tax planning, ACA planning, etc the beneficiary is the person... and perhaps only indirectly the person's heirs.

Another notable difference is that Medicaid LTC is targeted to the truly poor... the income and asset limits are extremely low... whereas ACA subsidies are really not targeted towards the poor since the poor... belothe poverty line... are covered by Medicaid... ACA subsidies are targeted to low and low-middle income people of between 100-400% of FPL.

If bewolf objects wealthy people getting ACA subsidies then the Medicaid planning ploy must really drive him crazy.

While I find it revolting, Medicaid planning would be appropriate for certain top level officials since they are "smart". High level vocabulary.

 

[Which Roger]

Can we please stop fighting? That's not in the spirit of this forum. Let's moderate ourselves so the moderators don't have to deal with this.

 

[Fedup]

They will be out of a job, moderators.

 

[Rustward]

When I was laid off from work I was getting unemployment and also looking for work... I was offered a temp job and took it... that went away and I started up unemployment again (continuing from before, not starting over)... got another temp job that lasted 9 months and off again... started up new unemployment...


Always looking for a job and never getting an offer... I will admit that a few places where I interviewed they were working over 60 hours a week and I might have slipped that I like 40 hours.... no offer came...

Limiting your workweek to 40 hours is not unreasonable, but I think at times you would have to go over in just about any professional job. But if you were applying for work and saying that just to disqualify yourself from the job and still collect the benefit, that goes against the spirit of the benefit. Just read the rules. It is about as black and white as it can be.

It is also very easy to cheat and the chance of getting penalized for it is all but nonexistent.

Unemployment benefits are not intended for someone who does not intend to go back to work. You took temp jobs, so there is some evidence that you were willing to work.

 

[DAYDREAMER]

OP, do you have any earned income? If so, one way to avoid the cliff might be to make some deductible IRA contributions for the amount that you're over the cliff.

No earned income for 2018 for Wife and I. The taxable amount for 2018 is $18500 from unemployment, $4000 for Year end bonus from 2017 (payed in 2018), and $13000 in dividends so far payed from Wellesley.

I've reviewed the 2018 tax information, and don't see any other ways to reduce MAGI.

 

[pb4uski]

Can we please stop fighting? That's not in the spirit of this forum. Let's moderate ourselves so the moderators don't have to deal with this.

Chill Roger. While there has been many divergent views expressed in this thread, in my opinion it's all been pretty civil. There's nothing wrong with a good healthy debate.

unless there's some posts that I've missed that have been removed by the mods, but I don't think so.

 

[pb4uski]

Wouldn't the $4k bonus received in 2018 earned income and could be offset by a contribution to deductible IRA and result in a reduction in MAGI?

 

[DAYDREAMER]

Wouldn't the $4k bonus received in 2018 earned income and could be offset by a contribution to deductible IRA and result in a reduction in MAGI?

Interesting question, I honestly don't know. Maybe a better way to call it is "profit sharing"

Due to having a large portion of our retirement savings in a 401k that we can't touch for another 5 years, I'm not sure I want to tie up any more money in Pretax ira's.

 

[Texas Proud]

Yes, I agree, it's not for the very poor. But it's really not for the lower fringes of the middle class either. Do you consider a single working person earning $49K a year middle class and able to afford health insurance? They are just over the ACA cliff. The median income in my part of the state is $112K. How about a couple earning $62K? They are also over the cliff. And both are too "wealthy" for subsidized housing. I'm taking about an area where the average rental for a 1 BR apartment is now in excess of $2K a month. These are working people who obviously do not have high paying jobs and most likely few assets other than a car.

From your posts, it appears that you possess substantial already taxed savings or IRAs that can be used for expenses. Do you really think the people I'm speaking about that are NOT eligible for an ACA subsidy are in the same boat as you are? They have no options except to pay or go without HI. You do have that choice.

Hey, I feel sorry for them... but do not call me immoral because I am able to take advantage of a tax break (or premium break since you do not think it is a tax)....


The law is what was passed... someone single has an issue with it... I might if I did not have 2 kids and a wife... but I do...


But there are many things in taxes that are not 'fair' (being lose with this)..... when I was single and making good money I had to pay much more in taxes than my coworkers who were married with kids... I also had to pay school taxes to educate their kids... I did not think it was fair for earned income tax credits... but I never thought any of them were 'immoral' for doing so...


So, I think your should apologize to everyone for that inflammatory word when you probably meant to say unfair... but I doubt you will...


OH, BTW, yes, I do think someone making about $50K should be able to afford HI... I did all the years I was working... and a number of years less than that in income... I also made sure I worked at a firm that offered HI...


Here is a suggestion... have that person talk to their employer and cut their pay a small bit so they will qualify... but I doubt it will make that much difference... I priced out an individual plan here and the premiums for a 30YO was about $350 per month... or less than 9% of income... which is considered affordable!!!

 

[audreyh1]

No earned income for 2018 for Wife and I. The taxable amount for 2018 is $18500 from unemployment, $4000 for Year end bonus from 2017 (payed in 2018), and $13000 in dividends so far payed from Wellesley.

I've reviewed the 2018 tax information, and don't see any other ways to reduce MAGI.

I also think any work bonus paid in 2018 would qualify as earned income. How will it be reported to you - a W2?

Our work bonuses or profit sharing were reported on a W2 along with regular wages, etc. We paid FICA on it.