The title speaks for itself. I was notified that the employer would be shutting down the company policy effective 8/31/2018 and was wondering what my best options would be based on the following information:
- The company is currently paying 100% of my premium but theoretically I am paying as this new plan was introduced last year and the company paying my health care was considered my raise beginning 1/1/2018 (taxable income stays the same, less OOP costs for me, less taxes owed).
- The plan I have is HSA eligible and I was planning on making the max contribution for 2018 in the coming months as I just recently maxed out IRA. I would like to be able to make this tax advantaged contribution for 2018 unless the math just doesn't work out. I'm planning to invest the full $3,400 in the market.
- Prior to getting on the newly established company plan I held short term health plan that was not ACA compliant (entire 2017) as I calculated the cost of insurance plus penalties was cheaper than an individual plan. I'd likely be planning to go this route in 2019 since the mandate will be no more.
- The current cost of my company policy is approximately $400/month and my employer will work with me on adding this amount back to my wages and I will be receiving the raise in my paychecks as a result although his email almost implied that he may still be willing/able to pay my individual policy from the company which would help keep my taxes at their current level.
- I am 33, single male, no pre conditions, and between $48k and $60k in AGI depending upon factors including this change.
I am a little fuzzy on whether I need to keep a HSA qualified plan for the last 4 months of 2018 to be qualified for my tax advantaged contributions, whether a new individual plan can be paid for directly by company and thus keeping any costs tax advantaged, and whether a short term plan to round out the year would disqualify me from the HSA contributions and end up costing me penalties that end up mudding things up.
Submitted July 30, 2018 at 09:39AM by shawnd300 https://ift.tt/2Ar5RKg
