Obamacare Subsidies Expanded for Canadians Moving to the US
Canadians moving to the U.S. who don’t have access to an employer-provided group healthcare plan or who aren’t immediately eligible for U.S. Medicare typically purchase individual private U.S. healthcare plans via the federally regulated health insurance marketplace under the Affordable Care Act (“ACA”), often referred to as Obamacare.
Middle-income Canadians moving to the U.S. who will be enrolling or who are already enrolled in these ACA plans can rejoice thanks to President Biden’s recently passed Inflation Reduction Act (IRA) of 2022. The IRA, which was signed into law on August 16, 2022, expands the generous upfront subsidies that are available to those who enroll in ACA plans.
How to Minimize the Impact of Inflation on Your Investment Portfolio.
During the first half of 2022, consumers began seeing significant increase in prices they pay for groceries, gas and at restaurants. This persistent increase in price you pay at the counter is called inflation, and if your salary does not get adjusted upward, it will continue to erode your purchasing power. At the time of this writing, the inflation in Canada and U.S., as measured by the Consumer Price Index, stood at 7.6% and 8.5% respectively on an annualized basis. The highest it has been over the past 30 years.
While in many cases it is easy to see the impact that inflation has on your checking account, it is not always easy to see the direct impact inflation makes on your investment portfolio and what, if anything, can be done to protect it.
The Globe and Mail: What to Consider Before Moving Back to Canada to Retire
Irina Matco was recently interviewed by Helen Burnett-Nichols from the Globe and Mail to explain the U.S.-Canada Totalization Agreement and how it impacts returning retirees and their retirement accounts. The article was published on July 27, 2022 and discusses taxation, residency, retirement planning and more.
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FBAR and FATCA: What Do I Need to Know?
FBAR and FATCA just might be the two most detested, feared and misunderstood acronyms in the expat tax lexicon. Shrouded in mystery and backed by severe penalties, the FBAR and FATCA are at least partially responsible for the record breaking number of Americans that have been renouncing their citizenship since FATCA was enacted in 2010.
If you have a financial interest in or signatory authority over an offshore financial account (e.g. a foreign bank account or brokerage account) understanding FBAR and FATCA requirements is key to avoiding a problem with the IRS or the Financial Crimes Enforcement Network. In this blog, we differentiate between the FBAR and FATCA and explain what you need to know to be compliant.
How to Hold Cryptocurrency in a Cross Border Portfolio
With news of inflation and pending interest rate hikes on every front page, many are carefully watching to see if cryptocurrency will prove to be the hedge against inflation many hoped it would be. While that remains to be seen, some of the world’s largest asset managers continue to express increasing interest as cryptocurrency becomes more mainstream. This could be a sign that cryptocurrency is still on track to transform the way we think about money and how we invest. What is sure is that for those who hold a cross border portfolio, there are special considerations to take into account before taking the plunge. In this blog post, we explore what cryptocurrency is, how to purchase it for a cross border portfolio and potential problems to avoid.
A Success Story: Reversal of Medicare Late Enrollment Penalties
In a recent triumph, as part of our cross-border health care advisory practice at MCA Cross Border Advisors Inc., we successfully appealed SSA’s imposition of Medicare Part A and Part B late enrollment penalties for our client.