Your Favorite 2018 Obamacare Stories

[russelltw]

Client has income of $58k (family of 2; 62, 61). Reviewing their situation today. Wife said they just got a nice $10k bonus.

I told them they better find a way to shelter that income and keep their income below $64k or it is going to be painful next April....Their subsidy is $2,200/month. That $10k might cost them $26,400 in subsidy repayment...gotta love this law.

 

[TN_agent]

We don't usually hear about it until it is too late, good catch now russelltw. Ouch! But sadly not the first time I have encountered basically the same thing.

 

[VolAgent]

Client has income of $58k (family of 2; 62, 61). Reviewing their situation today. Wife said they just got a nice $10k bonus.

I told them they better find a way to shelter that income and keep their income below $64k or it is going to be painful next April....Their subsidy is $2,200/month. That $10k might cost them $26,400 in subsidy repayment...gotta love this law.

That is absolutely brutal and the danger of using incentives to drive behavior. If you aren't careful, you can end up penalizing behavior that you really wanted to encourage.

 

[somarco]

Why don't you put $150 a month in the bank, because it's $1800 a year, and it will pay your deductible." She thought that was an okay idea, but felt that it would be better if the insurance company or the government paid the deductible.

No matter how often I hear things like this I still shake my head and think, "Are you stupid or something?"

 

[scagnt83]

Client has income of $58k (family of 2; 62, 61). Reviewing their situation today. Wife said they just got a nice $10k bonus.

I told them they better find a way to shelter that income and keep their income below $64k or it is going to be painful next April....Their subsidy is $2,200/month. That $10k might cost them $26,400 in subsidy repayment...gotta love this law.

They can put $11k combined into their IRAs.

If they aren't business owners their options are limited. HSA or 529 Plan are about the only other easy options.

 

[russelltw]

I am just glad she mentioned it. I had a client work overtime helping a farm and went over 400% and had to pay it back....$10,000+. He had to break it up over a couple years. Said story. He said he just forgot about it.

 

[Ann H]

A few years ago, a couple took $40,000 out of their 401K to landscape & build a pool. They went over 400%, and said they honestly hadn't even realized it! Between the penalty for early withdrawal on their 401K and the subsidy clawback, they paid dearly for that pool & landscape!