^^^ If you are retired, you can still contribute to an HSA, if you are under 65.
Source: https://livelyme.com/contribute-HSA-after-retirement
Source: https://livelyme.com/contribute-HSA-after-retirement
"Your HSA eligibility isn’t determined by employment...but is instead dependent on the type of health insurance plan under which you’re covered as well as your age."^^^ If you are retired, you can still contribute to an HSA, if you are under 65.
Source: https://livelyme.com/contribute-HSA-after-retirement
FYI, for formatting columnar text use the "Table" option. Formats it nicely.Plans vary a lot by state. Here are the choices I considered.
sorry this didn't format better.
I do the best analysis I can of premiums, HSA, Deductible, Max OOP, and which doctors are in plan. Co-pays before and after deductible are harder to compare but I try. My point is that I don't automatically go with an HSA plan, but it has come out best each year for me. So far.
Plan | Premium | Yr | Ded | OOP | MaxHSA | CoInsure |
Anthem HK Bronze X 6500 | 838 | 10,056 | 6,500 | 7,900 | no | 50% ER, 40% all else |
Anthem HK Bronze X 5250 | 855 | 10,259 | 5,250 | 7,900 | no | 50% ER, 35% all else, $40 PCP |
Anthem HK Bronze X 5900 | 878 | 10,533 | 5,900 | 7,900 | no | 50% ER, 35% all else, $30 generic drugs |
Anthem HK Bronze X 4900 | 887 | 10,640 | 4,900 | 4,900 | YES | 50% ER, 35% all else |
Anthem HK Bronze X 5700 | 890 | 10,682 | 7,900 | 7,900 | no | 50% ER, 30% specialist, Gen drugs $25, |
PCP OptimaFit Bronze 6000 | 964 | 11,573 | 6,000 | 6,000 | YES | 40% ER, 20% all else |
Piedmont POS Bronze HSA | 980 | 11,763 | 5,500 | 5,500 | Yes | 50% ER, 35% all else |
Anthem HK Gold X 1350 | 1,086 | 13,028 | 7,900 | 7,900 | no | 40% ER, gen |
Thanks for the formatting tip. btw as I look back at my spreadsheets, the numbers I gave are for 2019. 2020 was fairly similar though.FYI, for formatting columnar text use the "Table" option. Formats it nicely.
Curious, are you getting subsidy? Just looking at premiums it seems you are not. I'm also guessing, based on your deductibles you are single. So your taxable income and being single could then change results for married couple with income under the 400% limit. I do same analysis as you, trying to estimate my costs under each. So I was just curious if something in my analysis was overlooking something obvious.
I also compare with HealthSherpa, and while it uses some different assumptions, a quick check shows my "all-in" costs for HSA would be $8,490 and with plan I have it's $3,805. With almost $4,700 difference in cost I just can't find a scenario that I'd come out ahead with HSA with exception that both of us required some major medical attention.
My Bronze plan has $15,400 Ded, $16,300 OOP, almost all prescriptions are covered, $25/$65 for Dr/Specialist, no charge for labs. All-in per HealthSherpa = $3,805
By comparison, HSA plan $12,000 Ded, $12,000 OOP, no coverage for Dr, prescription, hospital, etc until deduction met. Premium is $16/mo cheaper than my Bronze plan. All-in per HealthSherpa = $8,490
And yes, I am single, so that does change things for couples and families.
...
The $4500 HSA contribution allowed me to get a $9500 subsidy. That turned a close call into a huge advantage for the HSA plan.
Age 55+?Just curious, how did you make a $4500 contribution to your HSA if you're single?
Age 55+?
I am close to but have not actually FIREd, so I would like to learn how folks keep track of their income (MAGI) for the year to not be over the ACA cliff. I can see there could be variable income sources (that could be estimated, but can't be exact until the amount is realized in the year) such as dividends, capital gain, rental income, HSA contribution (which I believe will bring down the MAGI) among other things. How do folks make sure the amount is not falling off the cliff? Do you feed all known info into last year Turbo Tax close to the end of the year, or is there a better software/way to do this? Thanks in advance for all comments
One way that someone (I'm not saying you) could make up that $4700 difference is if the HSA contribution was the difference between getting a large subsidy or not. Last year I was something like $600 from the subsidy cliff edge, and I did not do any Roth conversions. The $4500 HSA contribution allowed me to get a $9500 subsidy. That turned a close call into a huge advantage for the HSA plan.
Can I assume that ACA premium amount is not deductible (from one's taxable income)? Also, it sounds like the HI premium $ won't affect the MAGI in any way. Is this correct? Thanks.
If eligible, it will reduce AGI and thus MAGI, but not Schedule C net income and thus not self-employment tax....you can deduct it as a business expense if you have a sole proprietorship (plus some other criteria), which would reduce the Schedule C net income, which would reduce MAGI.
If eligible, it will reduce AGI and thus MAGI, but not Schedule C net income and thus not self-employment tax.
Bold is mine. @Rodi, So, I guess depreciation doesn't come into the MAGI calculation? But rental expenses do (property taxes, insurance, maintenance)? Thanks.Like several others here - I use a spreadsheet with my expected income sources and taxable portions of them
- DH's SS, rental income, my micro pensions, and... this hasn't been mentioned... Beneficiary IRA RMDs (inherited IRAs). Not optional - and yes taxable.
- Then I put my offsets (HSA contributions), expected rental expenses that offset rent payments,
If I have extra "room" in the taxable income, I roth convert to about $5k shy of the ACA cliff... $5k is my comfort level. (We have 3 family members on ACA, 1 on medicare)
Follow links in MAGI for Affordable Care Act purposes to avoid the need to guess.I guess depreciation doesn't come into the MAGI calculation? But rental expenses do (property taxes, insurance, maintenance)? Thanks.
Bold is mine. @Rodi, So, I guess depreciation doesn't come into the MAGI calculation? But rental expenses do (property taxes, insurance, maintenance)? Thanks.
Thanks for the links.Follow links in MAGI for Affordable Care Act purposes to avoid the need to guess.
Short answer: depreciation reduces AGI, and thus reduces this MAGI.
AGI and MAGI both are income before the standard deduction, so your cliff is $68K of income, not 92K.