<p>I knew this sounded familiar. I think your “questions” were well answered here: </p>
<p><a href=“Early retirement just made easier - Parent Cafe - College Confidential Forums”>Early retirement just made easier - Parent Cafe - College Confidential Forums;
<p>^^ the “answers” there were not definitive. </p>
<p>Again, I am trying to understand the law. </p>
<p>I have always comparing this to tax situation. I will assume everyone will do what are allowed in the laws to reduce their taxes. If one puts $$ in 401K to reduce tax, is that gaming the system? I will say that is not. </p>
<p>One could have millions of net worth but zero or next to zero income. </p>
<p>If ACA is purely income based. Then… … </p>
<p>And if you have $0 income, you get Medicaid…but only in Medicaid expansion states.</p>
<p><a href=“http://familiesusa.org/product/50-state-look-medicaid-expansion”>http://familiesusa.org/product/50-state-look-medicaid-expansion</a></p>
<p>Here you go. Read this.</p>
<p>But really…the question is…how do you pay your bills with $0 income? </p>
<p>I’m sorry, I understand one can leverage their income down to $0. But really…this Medicaid expansion is for those who truly have no income, not for folks who are sheltering their vast income and assets, are retiring early, and who really have the resources to support themselves. I personally think it’s shameful that you brag about your excessive growth in assets, but plan to try to get free anything. </p>
<p>Sure, you can probably do it…but come on…is this really what you think this is for?</p>
<p>I don’t think many with “millions in assets” are desperate enough to save a pretty penny that they’d put themselves on Medicaid. </p>
<p>But, go ahead. Try it. See how you get treated when you’re on Medicaid. I have a feeling it’s not going to be quite what you’re used to. </p>
<p>The IRA distributions ARE income under ACA according to this article. Subsidies for ACA are only available to those meeting income requirements. </p>
<p><a href=“http://money.usnews.com/money/blogs/on-retirement/2013/11/11/the-obamacare-trick-early-retirees-should-know”>http://money.usnews.com/money/blogs/on-retirement/2013/11/11/the-obamacare-trick-early-retirees-should-know</a></p>
<p>@HImom- you’re right. That’s listed as income in the link I posted… if D2 read it. </p>
<p>If I had millions in assets I would just avoid the hassles of dealing with any kind of insurance and self-pay. But that’s just me.</p>
<p>Ah but dadII says he isn’t going to take any retirement distributions. He is somehow going to pay all of his bills on $0 income for the year.</p>
<p>And I’m the Queen of England…</p>
<p>For some posters, it’s tough to understand the logic of what they post and whether they are intentionally just toying with others on the board. </p>
<p>Happy holidays, one and all!</p>
<p>Not sure what we will do about D’s medical coverage once she ages out of H’s coverage–hope she will have a job by this time in 2015! </p>
<p>Thumper, can I come visit and play with the corgis???</p>
<p>I’m a tax accountant. We are all dreading this tax season. How the heck did we become responsible for checking into people’s insurance. We went to a 2 day tax seminar a few weeks ago and half was about the ACA. It made me want to shoot myself. </p>
<p>I really really don’t want to deal with it.</p>
<p>I passed a post it note to my boss with the words “I quit!!” On it. She laughed. I’m not sure I was joking.</p>
<p>My understanding is many people can expect unpleasant Obamacare surprises at tax time.</p>
<p>According to…?</p>
<p>ETA: Actually, nevermind. Don’t answer. No need to turn political.</p>
<p>I hope we don’t lose OP’s place here. </p>
<p>Medicaid isn’t just for $0 income, it’s up to some number- was 15.6 or so here, for 2014. DadIi is figuring out some way to have cash on hand. But MAGI will likely catch up with him.</p>
<p>Btw, I had to include D2’s (at that point) 4k income, because she was counted as part of the household. I did not have to include D1’s larger income because she is on her own policy, through work. If any of that is wrong, it passed muster, here.</p>
<p>Sure wish it wasn’t so complicated! I know our insurer required us to provide our SSNs or pay a fine (tho don’t know how they thought our SSNs changed after all these decades). </p>
<p>Glad we have a CPA doing our taxes–I don’t want to deal with it!</p>
<p>Yeah, don’t take the bait. There are posters on this site who ONLY post about politically charged issues but never about anything related to their or their kids’ college education. It’s perplexing to say the least.</p>
<p>@HImom - neither do the CPAs, but don’t tell anyone I told you.</p>
<p>“According to…?”</p>
<p>According to an insurance broker who says a lot of folks are going to get surprises because basically everyone is clueless. And, I believe he’s right because, well, everyone is still clueless about what counts as the questions on this thread demonstrate. But, it’s hardly a secret.</p>
<p>When I started this thread, I feared that it could get ulgy.</p>
<p>I am not an accountant but based on my research I think I can address some of the questions raised.</p>
<p>To qualify for a subsidy your modified adjust household income (this is your adjusted gross from your tax return + taxfree interest income + untaxed social security + some other adjustments) must be between 100% and 400% of the federal poverty level. A dollar more or a dollar less than these limits will yield zero subsidy. Some of the early posts on this thread gave excellent links to documents that clarify this. Note the word household. The income of everyone (if they are required to file) that is listed on your tax return as a dependent is counted even if they are not buying insurance on the marketplace.</p>
<p>Whatever income that is taxable and part of your adjusted gross income counts. For example you can use a Roth Conversion to qualify. Roth IRA distributions do not count since they are not taxable. Taxable IRA distribution do count. Taxable scholarships of your dependent (which other posters told me is considered unearned income at least for kiddie tax purposes) is counted if the student is your dependent and is required to file a tax return.</p>
<p>If your modified adjusted household income is not in the stated range, you will not be eligible for a subsidy. If your income is just 100% of FPL then your subsidy might cover the cost of your insurance plan if you pick one of the lower plans. Your subsidy decrease as your income approaches the 400% level. At 1 dollar over, it disappears.</p>
<p>It is completely based on HOUSEHOLD income not assets. The fact that there is no asset test boggles my mind. I really do not want to debate the merits of this flawed law. Until Congress acts, it is what it is. </p>
<p>If anything I posted is wrong, please correct me. I have driven myself crazy trying to understand this law. I have only gotten this far by searching the web and by the generous help from people on this board.</p>
<p>I personally have struggled with the concept of controlling my income to qualify. On one hand, it is similar to the what many people do here to qualify for the AOC by declaring scholarships taxable. Both are perfectly legal but does it met the spirit of the law? </p>