by tomindenver » Thu Nov 16, 2017 11:02 am
Hi Steve,
Regarding your post over in the Pensions section under topic "Court Appearance" on Thu Nov 16, 2017 7:53 am, I am going to try an answer your questions, but I am replying over here because all your questions are around HCTC and this is where most of the HCTC discussion is.
First, please understand that so far we have nobody to consult with at Avaya or OneExchange when it comes to getting answers on HCTC, so most of the info on this has been from retirees like myself who have read thru many of the IRS HCTC web pages. There are a couple of retirees that have talked with their accountants and you will see the info they shared in earlier posts in this discussion thread. If you haven't already done so, I would encourage you to read all the posts in this thread as there is a lot of good info. You will find many answers and references to web sites where you can read about HCTC.
The insurance policy you need to qualify for HCTC can and should be an ACA compliant policy (to avoid a penalty), but it cannot be purchased on a Marketplace Exchange site (like healhcare.gov or your state's site). It has to be purchased directly from the insurance company or thru a broker. The OneExchange site has a page where you can shop non-marketplace plans.
People may be purchasing insurance or "filing" already, but you are are right that they won't be able to qualify for HCTC until their pensions are transferred over to the PBGC (December, 2017 or after). At that time, the PBGC should be sending a letter out to everyone affected, and that letter will be needed as proof when applying for HCTC at tax time or if you register to get advance HCTC premium payments during 2018.
When you file the tax forms for HCTC, you specify the months for which you want to use the HCTC, so even if you retire next year and start getting your pension thru PBGC then, you can still use HCTC for those months that PBGC is paying your pension next year.
I personally have seen no info on IRS HCTC web sites that your spouse can get HCTC unless she also is getting her pension from PBGC. I am pretty sure her survivor benefit with your pension is completely separate from the health insurance.
The question about income requirements, sliding scale, etc for qualifying for HCTC were discussed in earlier posts and so far there is consensus here that there are no income requirements. So it should not matter how much you and your spouse make in 2018.
The biggest issue we are concerned with now is whether tax reform will wipe out the HCTC if it is passed and implemented in 2018.
I think that covered most or all of your questions. Good luck.
TomInDenver