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  1. Member
    Join Date
    Aug 2017
    Location
    NorCal
    Posts
    314
    #41
    What is not being said is that the money invested into any ROTH account was already taxed. The Gov't already got paid their taxes! Looks to be double taxation just like they do with any State tax refund. I don't know what "loophole" they are referring to either but they are trying to get their hands on money that doesn't have to be reported on a 1040 by their laws and rules ie. money withdrawn from a ROTH account is not reportable as income on a 1040..... I know you can have a million bucks in a ROTH and get free obamacare as the money withdrawn from a ROTH is not reported as income which obamacare qualifies against and show a ZERO income to boot on your 1040.... That's the way I read it anyway.....

    Good luck!
    It's not what you can take with you,

    It's what you leave behind.

  2. #42
    Obamacare isn't free. It has premiums that may or may not be subsidized depending on your income. I looked at it last year for an income of $51,000 and just the silver plan premium was $1,022.36 per month. You also can't qualify for Obamacare without having an income of at least $17,609 in Kentucky. Contrary to popular belief, you can't lay on your azz with little to no income, and get free Obamacare. Lot of fake news concerning Obamacare.

    Quote Originally Posted by GJA View Post
    ..... I know you can have a million bucks in a ROTH and get free obamacare as the money withdrawn from a ROTH is not reported as income which obamacare qualifies against and show a ZERO income to boot on your 1040.... That's the way I read it anyway.....

    Good luck!

  3. Member
    Join Date
    Nov 2011
    Location
    Coral Springs, Florida
    Posts
    10,793
    #43
    Quote Originally Posted by mossie3 View Post
    Obamacare isn't free. It has premiums that may or may not be subsidized depending on your income. I looked at it last year for an income of $51,000 and just the silver plan premium was $1,022.36 per month. You also can't qualify for Obamacare without having an income of at least $17,609 in Kentucky. Contrary to popular belief, you can't lay on your azz with little to no income, and get free Obamacare. Lot of fake news concerning Obamacare.
    I think he is referring to the strategy of producing a small amount of income in retirement or using money from a RITH so you can get a subsidy on the premiums. I have heard alot of retirees talking about this strategy and they are talking about closing this loophole. Essentially if you get dividend income under the subsidy amount and use your cash to live off of until you qualify for medicare you may get your premiums subsidized even if you have a few million in your account. As long as you don't sell stock and don't realize gains it isn't income. I would prefer to make as much in income off my investments though and forgo the subsidy but many retirees do try to get the premiums with the subsidy if they are retiring before they qualify for medicare.

  4. #44
    Yes, assets aren't taken into account, just income, namely MAGI for everyone in the household collectively. So, if you can live on $18K or so of income, and a balance of enough cash, or already taxed assets like a Roth, you could manage your income to qualify for a subsidy. I'd guess a very small percentage of people would be positioned to take advantage of it.

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