ACA Health Insurance for Retirees at 61
When approaching retirement, understanding your health insurance options is crucial. This blog explores how to calculate income when applying for ACA health insurance at age 61. The Affordable Care Act (ACA) provides affordable health coverage for individuals and families, including those who are retired.
Income Calculation for ACA Health Insurance
For retirees applying for ACA health insurance, calculating income is essential to determine eligibility and premium costs. The ACA considers various income sources, including:
Pension or annuity payments
Social Security benefits
Investment income
Income from a part-time job
Any other taxable income
Calculating MAGI for ACA Eligibility
The Modified Adjusted Gross Income (MAGI) is used to determine eligibility for ACA subsidies. To calculate MAGI, you must subtract certain deductions and exemptions from your adjusted gross income. For example, you can subtract:
Health Savings Account (HSA) contributions
Traditional IRA contributions
Alimony payments
Example
Suppose a retired individual has an annual pension of $30,000 and Social Security benefits of $15,000. Their adjusted gross income would be $45,000. If they contribute $2,000 to an HSA and have $500 in traditional IRA contributions, their MAGI would be $42,500.
Applying for ACA Health Insurance
To apply for ACA health insurance, you can use the Health Insurance Marketplace or contact a licensed agent. The Marketplace offers a variety of plans from different insurance companies, and they can help you compare plans and prices.
Importance of Professional Help
Calculating your income and applying for ACA health insurance can be complex. It’s recommended to seek professional help from a licensed agent who is knowledgeable about ACA regulations. They can assist you in determining your eligibility, selecting the most appropriate plan, and maximizing your savings.
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