Health Insurance Premium Subsidy

[jjim6954]

We just received our new rates for 2018. They increased about 45%. Our premiums have doubled in three years. Does anyone know of legitimate strategies to shelter income or any reputable accounting firms that may be able to help with this issue? So much for the "affordable" care act.

 

[bingybear]

We just received our new rates for 2018. They increased about 45%. Our premiums have doubled in three years. Does anyone know of legitimate strategies to shelter income or any reputable accounting firms that may be able to help with this issue? So much for the "affordable" care act.

not sure what you are asking "shelter income"
I typically get a HSA compatible plan and fund the HSA. This reduces MAGI income. My taxable accounts are primarily in equity ETFs and distribute mostly Qdivy. This stay in the MAGI. I do not juice the income by buying leveraged funds that artificially increase the income component. Bonds and income producing assets are primarily in the IRAs. They don't increase the MAGI.

I guess the question is where is your income coming from? What type of assets in what kind of accounts? Are you withdrawing from IRAs? or other accounts that could be left alone?

 

[jjim6954]

MAGI forces me to include tax exempt muni interest. That's where I seem to be running into an issue. Unless there is another way to look at it....

 

[RockyMtn]

MAGI forces me to include tax exempt muni interest. That's where I seem to be running into an issue. Unless there is another way to look at it....

Just a thought but if you are that close to subsidies do tax exempt bonds really do you any good? Granted you would have to count taxable interest as well but the after tax gains might be better than the tax exempt even if you are paying taxes on them.

Only other thought is to make sure all of your bonds are in tax deferred accounts as those divs wouldn't count towards MAGI. If you've already done that then other than dumping the bonds there is not a lot you can do.

 

[pb4uski]

You could trade those munis for non-dividend paying stocks.... no income... will be included in appreciation. Make compensating changes in your tax-deferred accounts to rebalance to your target AA.

 

[bingybear]

MAGI forces me to include tax exempt muni interest. That's where I seem to be running into an issue. Unless there is another way to look at it....

I noted I have not income producing other than some normal (not juiced) Qdivy in taxable accounts. I don't have any muni's and all bond like stuff (PFF,PDI, PIMIX and the like) are in TIRAs.

If instead of munis you had VTI, IVV or something like SCHG. Look at where you income is coming from.

I'm sure an annuity sales guy could help you reduce your income. But I would be rather apprehensive of what the costs would really be.