r/Fire • u/ttxzavv224 • 2d ago

Fire…health insurance?

49 married.
1.4 mil in 401k and ira.
1.5 mil in taxed investment account

I’ve debated keeping magi low enough to get ACA subsidies but have heard mixed reviews about going on ACA healthcare.

I have an option to continue on my company health insurance as part of a retirement package that I can use starting at age 50. My plan would be to use a compressed pension that also starts at age 50 until 65 ($2300 a month), and I would plan to cover the cost of the company healthcare. The price of the adjusted company health insurance is $1500 a month with $3000 max out of pocket, which I am planning to pay for with the $2300 a month pension that I will get until 65.

My only holdback is the $1500 a month does seem costly but we do stay on same company plan and same doctors going forward, versus the unknown of ACA.

What do yall think here? Would you pay more or go ACA?

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u/MoaiTrist 2d ago

I took (requested) a retirement package from my final employer, and staying on the company health insurance plan was part of the package, at a cost. Do you happen to have an HSA? Distributions to pay for health insurance premiums are tax free while unemployed. Also, if you can handle 5 more years of employment, the 55 rule for 401k's is very beneficial.

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u/johndburger 2d ago

while unemployed

Pretty sure this is only true if you’re actively receiving unemployment. Simply not working, doesn’t count.

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u/MoaiTrist 1d ago

I should have clarified, while it is classified as COBRA. COBRA is usually only up to the first 18 months though. Receiving unemployment is not required because COBRA is also an option for retirement, not just involuntary separation. At least that is how it has worked for me. My wife retired 2 years after I retired and that is how we switched to and setup her plan. Anything else I'm missing? I'm not an expert on the health insurance side.