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Knowledge Empower You - Affordable Care Act

In upcoming years, this is what to expected under the new Affordable Care Act (ACA). While there are estimates as to what the ACA will cost and how much of that cost will be offset by new taxes and fees, realistically it’s impossible to predict at this point in time with any accuracy what impact health care reform will have on family budgets.
Beginning in 2013:

  • An increase in Medicare payroll taxes paid by higher-income taxpayers
  • An increase in the threshold for the itemized medical expense deduction from 7.5% to 10% of adjusted gross income
  • A new 3.8% Medicare contribution tax on certain investment income above specified income threshold amounts
  • Annual contributions to health flexible spending accounts (FSAs) are limited to $2,500, indexed for inflation in future years

Beginning in 2014:

  • “Shared responsibility payments” will apply to non-exempt individuals who do not purchase minimum essential health care coverage
  • An annual fee will be assessed on certain health insurance providers.

Beginning in 2015:

  • “Shared responsibility payments” will apply to certain employers that do not offer health care coverage to their full-time employees.

Beginning in 2018:

  • 40% excise tax on “high dollar” health insurance plans goes into effect.

How Does The Affordable Care Act (ACA) impact your retirement? Just Ask Freeman at  (301) 627-0123

Learn more about Affordable Care Act (ACA) here.