Author Topic: ACA subsidies and RMSA (Retiree Medical Savings Account)  (Read 1238 times)

johnworfin

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ACA subsidies and RMSA (Retiree Medical Savings Account)
« on: July 30, 2019, 09:33:53 AM »
I'm wondering if any one on the sub knows the answer to this, or has experience with it. The RMSA support folks don't seem to be able to answer.  The ACA support folks tell me it won't matter.  Neither of the support folks seemed very confident in their answers.

Hope this is the correct place to ask.  I'm FI and retired last month.

I have a Retiree Medical Savings Account. I noticed in the opt-in/opt-out notification that I need to opt-in in order to receive reimbursements for medical insurance premiums. Ok, seems simple, but they also had a paragraph that says there is an implication if you opt-in. To quote - "The decision to "opt in" to your plan is an important one, because under current IRS guidance, you cannot make or receive contributions to a Health Savings Account or receive premium tax credits that may otherwise be available to you for health insurance coverage purchased through federal or state marketplace while you have access to the retiree medical savings account".

This sounds to me like no ACA subsidies even if income levels are low enough to qualify. That of course would be significant to me since ACA without subsidies would be financially pretty high.

Thankyou

2020forreal

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Re: ACA subsidies and RMSA (Retiree Medical Savings Account)
« Reply #1 on: July 30, 2019, 11:20:24 AM »
I have been a lurker for awhile saw your post and wanted to let you know what I learned about this.

Three years ago we were offered a retirement package and didn’t actually except (which has worked out good)

The mega Corp that husband works for also offers this type of option for medical in retirement. They had some good information about this in the retirement package. It stated you couldn’t receive the subsidy if you were taking the medical account but if you opted out for that year you could get subsidy. And you could opt in later in future years. The account wouldn’t go away for 20 years. So I do know people that took the package and there account is waiting for them.

Others may chime in (with more knowledge) and you should talk to your employer to make sure they also follow this rule. Hope this helps

johnworfin

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Re: ACA subsidies and RMSA (Retiree Medical Savings Account)
« Reply #2 on: July 31, 2019, 11:16:49 AM »
Thank you for the feedback, this is helpful.  My plan now is to opt-in for the rest of this year and use funds to pay for COBRA.  Then opt-out for next year and use ACA.