I understand that if one can structure ones finances appropriately, it is possible to have very low reportable income once no longer working. Has anyone who retired from Chevron before age 60 been able to get their reportable income low enough to qualify for Medicaid? This seems like a better solution than ACA as the coverage is better and if cuts the greedy health insurers out of the game. I know in California a family of two with reportable income of less than about $17K can get 100% of the Medicaid benefit. I don't believe assets some into the test, only income.
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I don't know about you guys, but I know many millionaires and multi-millionaires in our business. It's not uncommon at all for the people with a bit of time in, if you haven't done the math. None of them use the ACA and none would even conceive of considering going on Welfare, Foodstamps, or Medicaid. That's just a fact. Behave, children. You're not getting any points for either lying or bragging about how many handouts you think you can get away with or even worse, do get away with. This is not a contest about how much candy you stole from the convenience store.
Medicaid is not in any way similar to Medicare, never was, never will be. It's the medical equivalent of Welfare. It's for those in poverty. Either you are successful or not. If you are not, and did not do well in your career or make good choices early in life, you may have to seek government aid, such as Food stamps or Medicaid. No one's judging here, let's just not try to put lipstick on a pig, fellas. Thanks.
Exactly my thoughts. Hats off to everyone doing it however works best for them. To each his own. To heck with the sanctimonious knowitalls who want to tell everyone else about their way, their 3 bed house with the bay window in Katy or Kenner, their fat wife bringing them a cold Schlitz.
@sgic, Absolutely. If you or anyone out there are able to qualify for Medicaid while you retain a big retirement nest egg, more power to you. I’m not jealous or calling you a thief. The law is set up a certain way for a reason. They know not many will be able to pass through loopholes. But if you are one of the very few who can, my hat is off to you. Enjoy.
Likewise, ACA users who laugh at people wasting money on the company plan should not sneer at those who managed to arrange their income to be low enough for Medicaid. Medicaid is for anyone at the lower income levels in states that don’t have the asset test. Just google Millionaire On Medicaid. Lots of people have figured it out. It is a legal and intended benefit, just like Medicare.
@rmdy and many of you other envious losers - The ACA Healthcare Plans are “Private” Plans, not welfare-grade products. The only difference is that government subsidizes them based on a person’s expected end of year income. So don’t knock the ACA and ignorantly state that you would prefer to buy another healthcare plan. The ACA has many plans from different regional and national providers and each of others come in 3 or 4 levels of benefits to better fit the needs of the consumer. The qualify for a government subsidy, one needs to be able to report their annual income taxes within a certain range. For the smarter retiree who diversified their savings and retirement accounts years ago, they can make off well using the ACA before they are 65. For the less astute retiree who didn’t prepare themselves well enough for a windfall the ACA provides— don’t going knocking the savvy retiree for taking advantage. Smart people stay ahead of the average person always. I’m one who prepared well to cease opportunities in life. Those who complain here saying we are ripping the system are only green with envy.
I am in a similar position too, except with a much higher 401k balance as well as other assets and also chose not to go with the ACA for tax reasons as stated below by -rrtf. I also don't get how anonymous people feel the need to post their exact numbers online. Does that give them some sort of perverse satisfaction? You could post anything and no one would even know the difference.
Iam in the same position as you , but I decided I would convert my 401k to a Roth IRA now when taxes are relatively low instead of taking the Obamacare subsidy
I want have my net worth in post tax accounts as soon as possible
I'm not sure anyone would refer to resorting to having to rely on the ACA, much less Medicaid (God forbid, that's not actually for normal working people, but those in poverty in case you didn't know), as being comfortable. None of those choices appeal to me, maybe I just have different priorities. I happen to be lucky to have retiree insurance offered to me, and if the ACA is "top-notch", then I must really be living large because their highest tier plan couldn't compete with what I was comparing it to through work. I choose not to blow my money on worthless things and health care is not a right, never has been, but something that I worked hard for the best. I put my and my famiiy's health first above all other things.
$88 per month is impressive and you have done well and retired quite early. Did you compare to Medicaid?
@qgpq, That's good that you can support yourself and congrats, but you are way off topic and your post is not even layoff related. With all of the retirement online communities you pick this one to post? Did the other normal retirement groups, early, normal and older, blow you off or ban you from posting? Lonely much?
This thread is about losers, unlike you, who game the system by playing poor and getting tax-payers to pay their entire heath care tab through Medicaid, the Welfare program aimed at the people in poverty in our community who cannot afford to feed themselves. They are standing in line with them to mooch all of the free handouts that they can get. I wonder if they get free government cheese in that line? I may like some of that to go with this Cab that I have open - LMAO!
I have been retired from Chevron since 2014 since I was 56. I retired well off financially. My 401k reached a balance of $1.6MM. My wife’s employer had 401k matching, but only 2%, so since 1998, she chose to max out her retirement savings in a Roth IRA. Both of us also invested our free cash in traditional CD savings accounts at the bank. We have always lived modestly, bought and quickly paid off our small 2,050 square foot home in Katy, TX. We live comfortably and travel every year. We’ve seen most of the United States and over half the world in our 30 years of marriage. When I retired from Chevron, the ACA was our choice for healthcare. We still are on Obamacare and enjoy a top notch medical plan with no deductible. There are a few copays, but the annual out of pocket maximum is $1,950 per person. We qualified easily for Obamacare because we were able to draw just enough savings from my Chevron retirement savings to report the lowest taxable income required in order to get the highest subsidy. We started off paying a monthly premium in the high $30’s. This year in 2019, our premium is $88. The government kicks in around a $1,600 subsidy every month. My wife and I are thankful to have saved and invested or money successfully and in a diversified manner. While we plan to leave my 401k virtually untouched until we are both 65 and on Medicare, for now we plan to reap the benefits of super cheap ACA healthcare while living off the non-taxable Roth IRA distributions and our cash in the bank accounts. With the ACA, it’s all based on how much taxable income you declare on your tax return, not the wealth you already have.
You would have to be completely incompetent and pathetically unsuccessful to come anywhere near qualifying for Medicaid, a program for the dirt poor. The ACA subsidies for low earners are one thing, but trying to qualify for Medicaid is the moral equivalent of trying to get food stamps, welfare, and Red Cross handouts when you are an able-bodied individual. Completely pathetic and immoral, not to mention the mark of a total loser in life and borderline criminal. To each his own, but I don't believe it. I don't believe that many of you are that woefully pathetic, unsuccessful, incompetent and immoral. I think that most likely these are just troll comments.
I agree 100%. If you are under 65 and qualify due to low income, you would be nuts not to be on Medicaid. It is actually pretty high quality care. Better than ACA in most cases and far better than Chevron plan. With CVX or ACA you could get a $20,000 bill for a trip to an out of network emergency room. no thanks.
If you are unemployed and cant find a job, nothing wrong with being on medicaid. And people dont aspire to be on it, its just something that is or isnt. If your income below certain level, you do not qualify for subsidy through the Marketplace. So you either accept medicaid or pay full price for health insurance. Why would a low income person want to pay top dollar for health insurance when they dont have to. Government doesnt want people depleting their assets to pay for health insurance, as your assets are what you need to keep for a secure retirement.
Why would anyone with a normal job/career and considering retiring think about how to qualify for Medicaid? Isn't that for poor people who can even afford to eat, much less pay hospital bills? You consider putting yourself in that government handout/assistance category often? That's pathetic and embarrassing, not to mention immoral.
As you can see from the adverts here, your nonsensical bickering is making someone quite rich. Keep it up.
“gloriously happy”, yet fixated on the layoff posts .... ok, whatever you say mate.
@lvgb, Yes, I’m gloriously happy. I made it to retirement and have the world in the palm of my hand. Time is mine to do with what I want. I enjoy each day as the prize that I was rewarded for a life of hard and dedicated work.
-lksr: So you got yours. Who cares! My only question is, are you happy?
@kqlh, Just to be clear, I am financially independent and living large after working hard and earning a good life for myself where I can afford to give back ... but I prefer not to.
@kvqb, Ever heard the saying, “Good guys finish last”? That sounds like you. I’m not a “bad” guy, per se, but at the same time, I will never pass up an opportunity to legally better myself at your expense (if you allow me).
-jazz: We make our country great again not by assuming everyone one else is evil, but rather by stepping up and doing our part the best we can. If you focus just on those few that milk the system it is easy to become jaded, but the truth is America has always been a great country in which the majority are doing their best to do the right thing. If we all do more and expect more from each other, the momentum will raise all boats. If I make no impact, as you say, (questionable) then at least I can die knowing I pushed the boat in the right direction. One takes their bit of happiness where they can find it. The funny thing is, at the end of the day, the “good” generally end up more content than the cheaters (even with a bit less money in their pockets)... so go figure, and choose your path wisely.
@jleb, You are one in a million. That’s why you are making no impact and throwing away your money. If the government aimed to waste no money, the laws and rules they make would have no loopholes. The government is here to help, but they are also here to help themselves and their friends. If you haven’t realized that already, you better learn fast.
“maybe you should send an extra donation to Uncle Sam to show your support”...I have done that before, and plan to do it again. That’s called patriotic dues:the real kind: not fake news. The idea that government a waste is just not backed up by objective facts. For example, Medicare has been shown to be a great value relative to most commercial plans. It is time patriots start actively supporting our government. When you pull benifits it comes from us (not from some invisable “other”). I am happy to help those in need (as I have done well in life), but to those milking every loop hole... no you are not honerable but rather a free loading leach. Live with it douch bag. Live your life low, that’s your right, but do not expect respect.
Food stamps are not available to you if you have assets over $3,500 (and declare them). However, if you do have food stamps you can use them to purchase filet mignon at the grocery. A friend of mine, who owned nothing in his name and thus qualified while residing at one of the swankiest addresses in town, used them to buy outrageous cuts of meat at a grocery where nobody else even paid with food stamps. The checkout girls just shook their heads.
Four states have approved work waivers in 2019. Not an issue.
Withdrawals from trad ira are considered income when filing taxes. However it is not considered as income in determining medicaid eligibility. Note that as of 2019 all able bodied medicaid recipients are required to work.
It is definitely not stealing government subsidies to apply for and receive Medicaid under the stated rules of the plan. Some of the dimwit posters on here probably think reading the tax code and structuring your affairs to minimize taxes is also “stealing”. Good for you - maybe you should send an extra donation to Uncle Sam to show your support.
One issue to remember is any IRA Withdrawal or IRA to ROTH IRA Conversion will have to be shown as income
I would rather convert my IRA to Roth and have the earnings grow tax free instead of taking the medical subsidy
I also think tax rates may go higher in the coming years
It is “declared” income. Most can not play poor for long if they were at all smart in their investments because they have large undeclared gains associated with any equity sales (cost basis on my funds tend to be above 50%). The big exception is the Roth IRA. I have a good bit in a Roth from early in my life (before I started to make too much to contribute). That money can be tapped without generating any income. That said, I am not going the route. I am well off after 30 years with Chevron and am more than able to pay my own way. Game the system if you must, for me, I like to do what I feel is “right”. I will die with a significant surplus, and my kids are all doing great so need no more help from me. You go your way, I will go mine.
Pre-55 retiree here. Nearly every penny I have outside of retirement accounts are in non-dividend, non-capital gains paying stocks (like Berkshire Hathaway which, by the way, is so diversified, it's almost like owning an S&P 500 fund). Thus very little IRS declared income as PLANNED. I don't write or make up the laws, I just abide by them. Maybe congress should get off their a$$es and do away with these little loop holes.
Um, Sherlock, once you retire you can live on zero income if you have savings.
I dare you to live on an income of $17000 and not have to dig into and deplete your savings. You're talking about a life of deprivation, certainly not a comfortable living. Certainly no vacations or new cars.
Full medicaid benefits are around $17K income this year for a family of two. Nobody has done it? Seems feasible if you manage to keep capital gains low and avoid dividend and interest paying entities in taxable accounts. I heard you can have one big cap gain per year and still qualify.
Your income has to be considered below the poverty level to qualify for Medicaid. If you think living below the poverty level is greedy, think again.
A Federal judge yesterday, Friday, found the ACA yo be unconstitutional due to that the “tax” penalty was eliminated by President Trump. The only reason the Supreme Court upheld the law in 2012 was because the individual mandate penalty was called a tax, which is constitutional. But now that the tax penalty is gone, so should the law. Nancy Pelosi said the ruling will be appealed immediately, but when this thing goes back to the Supreme Court again, this Federal judge’s ruling will be upheld. Enjoy your Obamacare for 2019. It’s going to be the last year you’ll be able to have it.
"Early" is the wrong adjective to use for medicaid.
Living in California on fixed income is the first mistake.
Yes, i am on medicaid. Due to aca, medicaid eligibility is now based solely on income, not assets. However, they are now introducing a work/community engagement requirement, unless you qualify for an exemption. Requirements/eligibility may vary from state to state.