Millions of Americans between the ages of 50 and 64 will qualify for help with premiums on health insurance through the Affordable Care Act (ACA) marketplace, and they have until August 15 to enroll. It’s designed to help people who lost their health insurance because of the job losses created during the COVID-19 pandemic. New subsidy rules will decrease monthly premiums for many insured through the marketplace by an average of $50. AARP research found that 5.6 million adults who are over 50 but not old enough to enroll in Medicare do not have access to coverage through their job or a public program.
With the COVID-19 pandemic forcing a number of Americans to be laid off, many people are taking a close look at 72(t) plans, which allows you to withdraw money without the usual 10% penalty, even if you are below the age of 59.5 years old. Dubbed 72(t) plans, they give you a series of equal payments taken at least annually. The duration of the plan must be at least five years or until the person reaches 59.5 years, whichever is longer. Talk to your tax planner, Monterey County Bank or one of our other local banks about this option. Another possibility which was made as part of the Cares Act is an exemption to coronavirus-related distributions as another exception. If you are interested in this option, act quickly as it’s only available until year end.