Obamacare Penalties: The Big Mistake Millions Are Making

Penalties under the Affordable Care Act take effect this year, but many don't understand exactly how much they could owe. Get the details here.

Jan 26, 2014 at 9:40AM

The Patient Protection and Affordable Care Act, also known as Obamacare, is controversial for many reasons, and one of them has to do with the penalties it imposes on those who don't get qualifying insurance coverage. But many people are still confused about exactly how the Obamacare penalties work.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the Obamacare penalty provisions to discuss the details. Dan notes that the penalties are $95 for each adult and $47.50 for each child in any given family, up to a maximum total of $285. But you also have to look at your income to see if you could owe more. Dan emphasizes that while most people think of the penalty as being 1% of income, that 1% only applies above your tax filing limit, which was $10,000 for single filers and $20,000 for joint filers in 2013. Moreover, Dan notes that the penalty can't be more than the average national premium for bronze-level policies, which is estimated to be around $4,500 to $5,000 for an individual plan. Dan concludes that the penalties can in fact be substantial, but it's important to know exactly what you might owe before making a decision about coverage.

Don't let Obamacare confuse you
Provisions about Obamacare penalties are unnecessarily complex, but you don't have to feel like you're in the dark about the Affordable Care Act. In only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." This free guide contains the key information and money-making advice that every American must know. Please click here to access your free copy.

Fool contributor Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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