ACA when one has no income and is living off of after tax cash reserves

[rbmrtn]

Quote:

Originally Posted by gbstack What is the penalty if you sign up for exchange based insurance and you miss the minimum income requirement?

There is no minimum to buy insurance on the exchange. The MAGI is for determining subsidy qualification. It will be reconciled on your tax return.

https://www.healthcare.gov/glossary/premium-tax-credit/

[gbstack]

Quote:

Originally Posted by rbmrtn There is no minimum to buy insurance on the exchange. The MAGI is for determining subsidy qualification. It will be reconciled on your tax return. https://www.healthcare.gov/glossary/premium-tax-credit/

I thought you had to have a minimum income to qualify for one of the exchanged based insurance plans and if your income was below the minimum you would be looking at Medicaid.

What would happen if you said your 2014 income would meet the minimum to qualify for exchanged base insurance and you missed that minimum requirement?

[pb4uski]

Have you looked to see what is on the Kaiser website? Or I seem to recall another thread on that topic.

[rbmrtn]

I think I misread your post, yes there is a minimum to stay out of medicaid. It depends if your state is expanding medicaid or not. Here's another link

https://www.healthcare.gov/what-if-m...ding-medicaid/

[daylatedollarshort]

Quote:

Originally Posted by Sesq One day, that could be me! Makes me think hard about those 529 contributions today . . . Unfortunately I am ten years plus out. The rules will be very mature by then.

I think there will always be ways to study tax and other regulations and use them to your advantage. You just might have different rules to follow in ten years.

It is hard to know the best route to plan for college ten years in advance. In California, there is a now a middle class scholarship. Families with incomes under 100K pay just $3.3K for tuition per year for the state colleges starting next fall and $7.3K a year for the public universities.

Add in merit or financial aid (low taxable income and assets in exempt asset classes to qualify), plus college income tax credits, and the annual out of pocket costs for an in state student could be fairly minimal.

[jflynn4]

Did a lot of researching this past weekend to figure out the most advantageous way to handle finances going forward. It's going to almost like working again, it seems.


Going to have to have sufficient funds in a non taxable account to not only keep myself under the threshold for subsidies (taking income from taxable accounts) but am going to have to predict what additional funds may be necessary for such as home repairs and cars.

Regardless, though, unless Florida rates are significantly worse than I've been seeing elsewhere, even without subsidy, I'm going to be looking at a reduction of almost $700 per month off what I'm paying today for a high deductible (high cost) plan.

Have not been in favor, personally, of the new health care law .... But I've resigned myself to figuring out how best to work the new "tax" system to my best advantage.

Just glad I'm out of the income producing work force as I suspect that rates for many younger workers is going to have to skyrocket to offset the costs that'll be incurred for people like me.