Archived What happens to 401k and Health Insurance after...

[Asuras]

What happens to 401k and Health Insurance after you get terminated? How long does the health insurance last?

 

[Yetive]

You will get a letter about enrolling in COBRA for benefits. I am not sure if they end right away. If you have more than $5000 in your 401k, you may leave it where it is or roll it over to an IRA. Under $5000, I believe they send you a check.

 

[Black Sheep 214]

If you are eligible and sign up for COBRA it will be retroactive back to the day you lost your coverage. Fair warning, it is expensive.

 

[seasonaldude]

You don't need Cobra. Losing a employer health insurance for any reason is a life changing event that allows you to enroll for Obamacare outside of the regular enrollment period.

 

[allnew2]

You don't need Cobra. Losing a employer health insurance for any reason is a life changing event that allows you to enroll for Obamacare outside of the regular enrollment period.

What Obama care? It ends at the end of this year . And don’t tell me the “ free one” that you pay at the end of the year because it’s qualified as income . People and socialize medicine 🤦‍

 

[Ashfromoldsite]

You can go 12 weeks without any insurance without being penalized. Been there...

(Had to edit...have put that phase of my life out of my head and had a brain lapse).

 

[bikebryan]

If you are eligible and sign up for COBRA it will be retroactive back to the day you lost your coverage. Fair warning, it is expensive.

Truthfully it is not really that much more expensive than what was being paid before - you just have to pay ALL of it instead of your employer picking up their part. COBRA has you paying the full amount plus an additional 5%.

 

[bikebryan]

You can go 12 weeks without any insurance without being penalized. Been there...

(Had to edit...have put that phase of my life out of my head and had a brain lapse).

Nobody is penalized anymore. The individual mandate and penalties were abolished for the 2018 tax year. So although you MUST have health care, there is not enforcement method.

 

[bikebryan]

What Obama care? It ends at the end of this year . And don’t tell me the “ free one” that you pay at the end of the year because it’s qualified as income . People and socialize medicine 🤦‍

Huh? The ACA does not end this year. What has ended is the individual mandate and the penalties which cannot be enforced. So the ACA is staying in place, but cannot be enforced. The Individual Mandate and Penalty rollback is already in place for the 2018 tax year.

 

[GoodyNN]

Nobody is penalized anymore. The individual mandate and penalties were abolished for the 2018 tax year. So although you MUST have health care, there is not enforcement method.

Then why do we still have to declare coverage when filing our taxes?

 

[TTGOz]

As far as 401k goes, you have to connect with an HR TM or ETL-HR to get your 401k transferred into an IRA penalty and tax free. If you transfer without Target, you get penalized 20%. I just put my two weeks in and I have $2200 in my 401k with Target so I need to do that.

 

[allnew2]

Huh? The ACA does not end this year. What has ended is the individual mandate and the penalties which cannot be enforced. So the ACA is staying in place, but cannot be enforced. The Individual Mandate and Penalty rollback is already in place for the 2018 tax year.

But isn’t the Obamacare that penalized everyone for not having healthcare ? Isn’t that the insurance that force everyone to get and still be qualified as income at the end of the year? Again socialize medicine that no one knows how really works unless you lived it.

 

[seasonaldude]

But isn’t the Obamacare that penalized everyone for not having healthcare ? Isn’t that the insurance that force everyone to get and still be qualified as income at the end of the year? Again socialize medicine that no one knows how really works unless you lived it.

It's not socialized medicine. Forcing people to pay insurance companies isn't socialized medicine. But, anyway, the ACA will continue to exist (for now). It's just that unlike in the past, you no longer have to participate even if you do not have insurance from elsewhere. Well, technically you do have to, it's just there is no way to penalize you for lack of compliance.

 

[can't touch this]

Insurance is a scheme to socialize/distribute risk, and the ACA made a lot of people's premiums shoot up due to the increased liability

 

[can't touch this]

And it worked out to be mostly a tax on the middle class, which will be going away very soon so...WHELP

 

[bikebryan]

Then why do we still have to declare coverage when filing our taxes?

Because the ACA still requires you to have health coverage - but there is no enforcement method anymore.

 

[bikebryan]

It's not socialized medicine. Forcing people to pay insurance companies isn't socialized medicine. But, anyway, the ACA will continue to exist (for now). It's just that unlike in the past, you no longer have to participate even if you do not have insurance from elsewhere. Well, technically you do have to, it's just there is no way to penalize you for lack of compliance.

What he said! The compliance part of the law is still there, but there no longer is any way to punish you for not meeting that compliance. They took the teeth out of it.

 

[redeye58]

but there is no enforcement method anymore.

Basically the equivalent of slapping scofflaws with a rubber chicken.