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  • Health insurance deductibility .

    I will soon  be retired and withdrawing my 457 money.   Can I deduct my future health insurance premiums from this deferred income?

  • #2




    I will soon  be retired and withdrawing my 457 money.   Can I deduct my future health insurance premiums from this deferred income?
    Click to expand...


    The meaning of your question escapes me. What future health insurance premiums are you asking about? Does your employer continue to provide insurance coverage after you retire? Or are you asking about tax deductibility? Or something else...?
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      jfox,

      from age 60-65 I will likely pay health insurance premiums through a combo of 1) husband's State of IL. benefits,  2) COBRA from my current  hospital  employer, 3) open market ACA premiums.

      Will these premiums be deductible against my 457 deferred income ?

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      • #4
        There are a couple of ways for an individual to deduct health insurance premiums:

        1. As SEHI (Self Employed Health Insurance) if you have IC income or

        2. As an itemized deduction but

          • only if you itemize, and

          • only for the amount of gross medical expenses that exceeds 10% of your AGI




        The deduction will be against either your Gross Income (as SEHI) or against your AGI (if as an itemized deduction), not directly against your 457 deferred income. Does that answer your question or am I still missing something :-)?
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          jfox,   I think what you are (disappointingly ) telling me is that "457 deferred income" can not pass as  "IC income".

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          • #6
            So that's what you were asking! Nope, it won't pass as IC income. otoh, if it did, then you would be paying FICA taxes on it. Doesn't that make you feel better?
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #7
              jfox, Yes,   I feel great about it. !!!! Who Hoo !!

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              • #8
                So you could be self-employed and earn income and then write of the premiums, correct?  Would the 457 income be affected at all be only being semi-retired?

                cd :O)
                Yet those who wait for the LORD Will gain new strength; They will mount up with wings like eagles, They will run and not get tired, They will walk and not become weary. -- Isaiah 40:31

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                • #9




                  So you could be self-employed and earn income and then write of the premiums, correct?  Would the 457 income be affected at all be only being semi-retired?

                  cd :O)
                  Click to expand...


                  You must be profitable but, yes, you can write off SEHI on page 1 ("above the line") of your 1040, line 29. You cannot deduct more in premiums than your earned income.

                  I'm not sure what you're asking about the 457 income. Are you asking if it would be reduced like SS income would be reduced? If so, there is no relationship. You have control over a retirement account to do with as you please.
                  Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                  • #10




                    jfox, Yes,   I feel great about it. !!!! Who Hoo !!
                    Click to expand...


                    Was there a touch of sarcasm in your erudite response?  :P
                    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                    • #11

                      jfoxcpacfp wrote:
                      I’m not sure what you’re asking about the 457 income. Are you asking if it would be reduced like SS income would be reduced? If so, there is no relationship. You have control over a retirement account to do with as you please.
                      Click to expand...


                      As to the 457, that is what I was asking.

                       
                      Yet those who wait for the LORD Will gain new strength; They will mount up with wings like eagles, They will run and not get tired, They will walk and not become weary. -- Isaiah 40:31

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