Health Care Changes …

Beginning in 2013 (yes, that is next year), a 3.8% surtax on investment income will be assessed on high-income taxpayers to finance the health care reform bill. The income threshold is $200,000 for single filers and $250,000 for joint filers. Withdrawals from retirement plans are excluded from the list of investment income items. Therefore, withdrawals from qualified plans and IRAs are not subject to the 3.8% surtax, but may raise overall income above the threshold amount, which could subject other (investment) income to the 3.8% tax. Similarly, the taxable income from completing a Roth conversion is not subject to the 3.8% surtax, but also might raise overall income above the threshold.


There are more features to the law that do NOT apply to high income … they apply to everyone!


There is a requirement to purchase health insurance … here’s a flow chart about how that would work and what the penalties are (they go up over time) that starts at $95/adult max 295/family or 1% of income whichever is greater starting 2014 going up to $695/adult max $2085/family or 2.5% of income whichever is greater in 2016 and beyond.

Pre-existing conditions info.

And the list goes on … for more information I suggest you go to the horse’s mouth at For those over age 65 your information can be found at


I am not the expert on health care … but Jim Holt is … feel free to contact him if you have health insurance questions to include medicare and medigap coverage.


There are a lot of changes that are going to happen in health care. The below summarizes the highlights.


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