Early 401K withdraw for ACA

[john61ct]

My understanding is, you're not allowed to be absent from the state over a certain period, or X days per Y months, etc.

Are some states less rigid than others about that issue?

[diugo]

Originally Posted by john61ct

My understanding is, you're not allowed to be absent from the state over a certain period, or X days per Y months, etc.

Are some states less rigid than others about that issue?

I don't lose my Arizona residency (and thus my Medicaid coverage) just because I travel out of state for a few months every year.



However, in AZ and I suspect most states, Medicaid covers non-emergency treatment only in your home state. That's why Medicaid For All is not Medicare For All, which would obviously be much better. Fortunately I can take care of my routine medical needs every winter, while I'm actually here in Arizona.

[sailorboy1]

Originally Posted by sailorboy1

I've posted before on how us in the USA can qualify for a health care ACA subsidy (looks that my wife and I are getting $21.6k for 2019).

The way I've been meeting the minimum income level the last 2 years is by taking an early withdrawal for our 401k plans. Last year I paid a $2300 early withdrawal penalty (10% of the withdrawal), which was a LOT less than what I saved on health insurance. But, last year I wasn't as smart as I must currently be, because I found an exception to the 10% penalty rule and it doesn't appear to be well know.

If you were 55 or older when you left employment and had a 401k with the employer you can take an early withdraw from it without the penalty. There are of course rules and I wouldn't go into them as I'm not a tax advisor. But, I know people focus on the 59.5 age thing as to withdraws (I was). For some I bet the difference in basically "free" health insurance is the difference in a couple of years starting their cruising life.

Did my taxes today.

Paid no taxes from my early withdrawn (because I followed the rules) and got a 100% refund for the amount I paid last year for my ACA plan. Still paid some last year for tests and copays, but it was minor (for USA health costs).

The big winner really in this whole thing we’re the doctors and health insurance people.

[Paul L]

Originally Posted by sailorboy1

Did my taxes today.

Paid no taxes from my early withdrawn (because I followed the rules) and got a 100% refund for the amount I paid last year for my ACA plan. Still paid some last year for tests and copays, but it was minor (for USA health costs).

The big winner really in this whole thing we’re the doctors and health insurance people.

And anyone with pre_existing conditions , or with lower income and buying private health insurance.

[sailorboy1]

I don’t understand, but it doesn’t really matter as I think I’ll leave any ranting to others.

[LF4]

This is what I do for a living. Let me know if you have questions.

Originally Posted by sailorboy1

I've posted before on how us in the USA can qualify for a health care ACA subsidy (looks that my wife and I are getting $21.6k for 2019).

The way I've been meeting the minimum income level the last 2 years is by taking an early withdrawal for our 401k plans. Last year I paid a $2300 early withdrawal penalty (10% of the withdrawal), which was a LOT less than what I saved on health insurance. But, last year I wasn't as smart as I must currently be, because I found an exception to the 10% penalty rule and it doesn't appear to be well know.

If you were 55 or older when you left employment and had a 401k with the employer you can take an early withdraw from it without the penalty. There are of course rules and I wouldn't go into them as I'm not a tax advisor. But, I know people focus on the 59.5 age thing as to withdraws (I was). For some I bet the difference in basically "free" health insurance is the difference in a couple of years starting their cruising life.

[evm1024]

Originally Posted by sailorboy1

Did my taxes today.

Paid no taxes from my early withdrawn (because I followed the rules) and got a 100% refund for the amount I paid last year for my ACA plan. Still paid some last year for tests and copays, but it was minor (for USA health costs).

The big winner really in this whole thing we’re the doctors and health insurance people.

Thanks! and I really really like your posts. We are in the same boat and want to get the best deal out of the system that we legally can. Real soon now I expect to retire and go cruising.

This is what we pay our legislators for - to make laws. And as a law abiding citizen I will not break the law. But, I will use every law to my advantage as is my right.

Regards!

[Paul L]

Originally Posted by sailorboy1

I don’t understand, but it doesn’t really matter as I think I’ll leave any ranting to others.

No rant at all. Just pointing out that the ACA benefited far more than docs and hospitals as you implied.

[evm1024]

Originally Posted by Paul L

No rant at all. Just pointing out that the ACA benefited far more than docs and hospitals as you implied.

(no slight to you Paul or to anyone else)

Reminds me of a friends mother. She was 17 at the end of WW2 and married a US GI. Once when having drunk a few too many she commented on the good things that Hitler did. (really I'm not comparing Hitler to ACA, just run with it)

The next morning she did comment that she was just remembering the bread lines and hardships of her childhood. And the rise of Hitler brought an end to those hardships for her and her family. it was good before the insanity...

She said that you do not judge by the best of someone or something. You need to look at the worst.

The whole point is not to judge ACA by who it helps, Or the average "goodness" but by who it hurts. Helping 10 million while burning 6 million is not a virtue.

We need better.


I work at a medical university - Do no harm - Is not the motto of administration.

[CarlF]

I've just gone onto ACA at 63. I'm in the fortunate position of having enough money to afford both a boat and healthcare - although I'll sure be happy to get to 65 and Medicare.

I was pleasantly surprised to get a gold+ Blue Cross Massachusetts policy with a $1000 annual deductible and drug prices comparable to my old employer plan for $1262/month. I could have gotten it down to $700 with higher deductibles. No pre-existing condition rules. This is with no subsidy. They didn't even ask for my income since I wasn't applying for a subsidy.

I don't understand why Massachusetts seems to be so much better than many other states - nothing is cheap here.

I've got no problem with people legally getting a subsidy through some financial maneuvers but in my case it's better to pay full price for two years than tap the 401k.

[Hoosierdoc]

Let’s say we’re all towing a boat by swimming and pulling it. Injured people can sit in the boat while we tow them to our destination. We decided to identify injured people by the fact they have a bandage wrapped on a body part.

Then some genius figures out if he puts a bandage on his uninjured arm he will appear injured and by the rule he can get in the boat and not have to tow it! After doing so and being put in the boat, the other people have a harder time towing the heavier boat with less help.

Then this guy starts yelling out to others in the water: “hey, just wrap a bandage around your arm and come join me up here! The wind and sun feel great!”

How do you think the people in the water feel?

[sailorboy1]

such a waste of internet typing

[Sailmonkey]

Originally Posted by Hoosierdoc

How do you think the people in the water feel?

Like they’re being duped by the broken system.

[Orion Jim]

Originally Posted by Hoosierdoc

Let’s say we’re all towing a boat by swimming and pulling it. Injured people can sit in the boat while we tow them to our destination. We decided to identify injured people by the fact they have a bandage wrapped on a body part.

Then some genius figures out if he puts a bandage on his uninjured arm he will appear injured and by the rule he can get in the boat and not have to tow it! After doing so and being put in the boat, the other people have a harder time towing the heavier boat with less help.

Then this guy starts yelling out to others in the water: “hey, just wrap a bandage around your arm and come join me up here! The wind and sun feel great!”

How do you think the people in the water feel?

[sailorboy1]

I bet the people in the water feel about the same as the poor people living in a rental apartment feel when they realize that the rich guy with a mortgage just took a income deduction on their taxes. Or the single person or childless couple feel when they pay their school taxes or note that the couple with 4 kids (that was their choice to have) get a tax break for them.

Like any government tax deduction or program, it's only unfair to those that don't qualify for it.