Author Topic: Do Roth conversion to qualify for Obamacare or keep income near $0 for Medicaid?  (Read 1656 times)

FIREin2018

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  • I did decide to Fire in 2018 @Age47! :)
Background:
Age = 47, single, no kids.
I was laid off so i decided to FIRE.
Employer is giving me fully paid Health Insurance till April 2019.
I live in VA, which has expanded Medicaid.

i went through Healthcare.gov during open enrollment (11/1/18 - 12/15/18) to get Obamacare starting May 2019.
I haven't completed the application yet because Obamacare now has income verification.
You can't just say you make 140% above Federal Poverty Levels (FPL).
(If you make less than 140%, you go on Medicaid.)

140% FPL = $17k for a single person.

1) Obamacare:
You have until Feb 2019 to submit documents to prove income for all of 2019.
i have no idea how to prove that i will have at least $17k worth of income by Feb 2019 since i dont plan on doing the Roth conversions till Dec 2019.

I'm doing Roth conversions because i have all this tax free space because my income will be just bank interest + dividends from non-retirement stock accounts.

2) Or should i just stay on Medicaid?
(i'm healthy. i only visited doctors twice in 2018: For an annual check up and for a cold.)

3) Or.. ?

What say you Mr Money Mustache community?
« Last Edit: November 21, 2018, 02:03:20 PM by FIREin2018? »

jim555

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Don't confuse tax free space with income for ACA purposes.  MAGI income for ACA even includes tax free interest from muni bonds. 

Do you want Medicaid?  Have you looked into how it is in your area?  Some people want to avoid it because the coverage is sub standard, it depends on your state.

I would do a monthly Roth conversion that is over the Medicaid line if I wanted to avoid Medicaid.  If you do it all at once at the end of the year and report it that way they will put you in Medicaid for 11 months, since your monthly income would be low enough in those months (assuming no other income).

Cranky

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Medicaid is pretty decent coverage, but you may have trouble finding a doctor who takes it, so I’d start with that.

Monkey Uncle

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Does Virginia run its own ACA program?  I ask because I went through sign-up directly on healthcare.gov.  It did not require income verification.

 

Wow, a phone plan for fifteen bucks!