Financial Calculator Update 12/31/2009
The quarterly update for 12/31/2009 is a large update, affecting almost every calculator. The majority of the changes affect the functionality of the calculations, updating them to 2009 rules and regulations. The most significant calculation changes in this update were to the retirement, savings, and tax calculators.
If you have not updated your calculators recently you should definitely refresh your existing calculator pages. All updates are cumulative, so if you start fresh with this update, you will have all previous calculator updates as well. If you would like, you can review our 9/30/2009 update: 9/30/2009 Update. (The 12/31/2009 update includes all changes included in previous updates, you do not need to download any other updates to have the most current versions of all of the calculator components.)
Update instructions*:
- Download the latest version of your calculators from your download site, found on your update e-mail notice.
- Execute the Calc.exe file from your download. This is a self-extracting zip file. (Or unzip the Calc.zip file if you are using a non-windows platform.)
- When prompted for a directory, you may use the default of "java" or enter your own. It is recommended that you extract the update to a new directory and then move the required files to your production environment. One directory will be created with no subdirectories.
- If your current deployment has the directories KJEgui, KJEgraph and KJEcalculation, delete the directories and their content from your server. The new version no longer requires these directories or their content.
- Replace your current dinkytown.jar file with the new version.
- Replace all files with the extension "class" with the new version.
- Make required changes to any HTML documents as described in this document or replace all of your existing HTML documents and re-apply your web-site custom changes.
*Please note, if you have a Servlet or other custom deployment (other than the custom formatted delivery described below), installation instructions for your package will found on your download page.
Update for custom formatted delivery**:
**Custom formatted delivery is a special option that you can add to your maintenance update service. With this option we can apply an HTML, JSP, CFM or ASP template to your calculator pages and their reports before the update is sent to you. You will then receive your calculator pages with all of your site formatting in place, without any rework to include changes that have been made to the pages deployed on your server. If you are interested in using custom formatted delivery, please contact us at (612) 331-2291, or for more information.
- Download the latest version of your calculators from your download site, found on your update e-mail notice.
- Execute the Calc.exe file from your download. This is a self-extracting zip file. (Or unzip the Calc.zip file if you are using a non-windows platform.)
- When prompted for a directory, you may use the default of "c:\java" or enter your own. It is recommended that you extract the update to a new directory and then move the required files to your production environment. One directory will be created with no subdirectories.
- If your current deployment has the directories KJEgui, KJEgraph and KJEcalculation, delete the directories and their content from your server. The new version no longer requires these directories or their content.
All pages will be custom formatted to your site, no further integration or modification of the calculators is required. Please note, if your custom delivery uses Active Server Pages (ASP), Java� Server Pages (JSP) or Cold Fusion (CFM) the respective ASP, JSP or CFM pages will be in place of your HTML documents for all calculator main pages. Report templates will remain in HTML documents (these documents are not called by your server, but instead used by the applet in the main calculator page).
To clear your Browser's cache:
When you test the new version of the calculators, make sure that the browser you are using uses the new files instead of any it may have in its cache. You may need to clear the browser's cache manually to ensure the new versions are loaded.
Internet Explorer:
Choose "Internet Options" under the "Tools" menu and on the "General" tab click on the "Delete" button under the Browsing History section. Click the top button "Clear private data now..." Click "Ok" when prompted if you wish to delete all temporary files. Close this dialog box, and all open Internet Explorer windows. Your Cache should then be cleared.
Firefox and Netscape:
Choose "Clear private data..." under the "Tools" menu. Check the box for "Cache" and then click the button "Clear private data now".
Master Changes (no HTML changes required affects all calculators but is limited to java class files.)
- Beta browser "Chrome" from Google: Fully supported. Note that "Chrome" requires Java 6 update 11 to be installed on the end user's computer.
- Firefox 3: Fully supported. Note that Firefox 3 requires Java 6 update 11 to be installed on the end user's computer.
- Internet Explorer IE8 and Windows 7: Fully supported. Requires Java 6 Update 17 to be installed on the end user's computer.
- Keyboard Accessibility Changes: To allow for use of all applets for users using screen readers and/or no mouse input. As of Java 1.6.0 when a calculator had the input focus, the only means to leave the calculator was to use a mouse to click outside of the calculator "box", either in the page or on another component. This new release allows the user to press the "Esc" or "Escape" key to leave the applet. When the "Esc" is pressed, the focus is transferred from the Calculator Applet, to the "Calculate" button that appears below the applet. To accomplish this, a small name tag was added to the input form that contains the "calculate" and "view report" buttons. The javascript changes are as follows:
-
CHANGE 1:
<FORM><INPUT TYPE='button' ...
changed to:
<FORM name=calcsubmit><INPUT TYPE='button' ...
The dinkytown.jar file was modified to accomidate this changes as well.
CHANGE 2:
New function added to javascript section as follows:
function doLeave() {
document.calcsubmit.btnCallCalc.focus();
}
Master Changes (HTML Modification required, affects all or most calculators.)
- All U.S. mortgage rates have been normalized
All default interest rates have been made consistent across all mortgage calculators. The following rates are now used:
- 30 Year Fixed rate: 6.00%
- 15 Year Fixed rate: 5.75%
- Adjustable Rate (mortgage): 5.00%
- Equity Line of Credit: 9.0%
This are the default rates that appear and can be changed by the calculator user. Your specific calculator build can indicate the specific rate for each of the types listed above. If you wish to change your default interest rates, please contact us via email with your required rates of return.
This affects the following 28 calculators:
HTML File Changed Name Biweekly.html Bi-weekly Payment Calculator ExistingBiweekly.html Bi-weekly Payments for an Existing Mortgage FHAMortgageQualifier.html FHA Mortgage Loan Calculator MortgageAdjustable.html Adjustable Rate Mortgage Calculator MortgageApr.html Mortgage APR Calculator MortgageAprAdjustable.html APR Calculator for Adjustable Rate Mortgages MortgageArmvsFixed.html ARM vs. Fixed Rate Mortgage MortgageBalloon.html Balloon Mortgages MortgageBlend.html Blended Rate Mortgage Calculator MortgageLoan.html Mortgage Loan Calculator MortgageCompare.html Mortgage comparison: 15 years vs. 30 years MortgageConsolidate.html Mortgage Debt Consolidation MortgageFixedvsIO.html Fixed Rate Mortgage vs. Interest Only Mortgage MortgageFixedvsLibor.html Fixed Rate Mortgage vs. LIBOR ARM MortgageFixedvsNegAm.html Option ARM vs. Fixed Rate Mortgage MortgageIncome.html Mortgage Required Income MortgageInterestOnly.html Interest Only Mortgage Calculator MortgageIOAdjustable.html Interest Only ARM Calculator MortgageLoan2.html Mortgage Loan Calculator (PITI) MortgageMax.html Maximum Mortgage MortgagePayoff.html Mortgage Payoff MortgagePoints.html Mortgage Points Calculator MortgageQualifier.html Mortgage Qualifier MortgageRefinance.html Refinance Breakeven MortgageRentvsBuy.html Rent vs. Buy MortgageTaxes.html Mortgage Tax Savings Calculator ReverseMortgage.html Reverse Mortgage Calculator ShouldIRefi.html Refinance Interest Savings - All rates of return normalized
All default rates of return have been made consistent across all calculators (Savings, Investment, Retirement and certain Mortgage and Loan calculators where investment rates are required). The following rates are now used:
- Long term market rate: 8%
- Conservative/retirement market rate: 6%
- Savings/bank rate: 2%
- Federal mid-term rate: 2.95% (Used for 72T calculators only)
Your specific calculator build can indicate the specific rate of return you would like to use for each of the above categories. If you wish to change your default rate of returns please contact us via email with your required rates of return. The calculators affected by these rates are listed in the table under the Rate of Return definition update.
- The definition for Rate of Return has been updated to include the S&P 500 average to December 2009.
New definition:
The actual rate of return is largely dependent on the type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
This affects the following 56 calculators:
Calculator Type Name HTML File Changed Auto Calculators Lease vs. Buy BuyvsLease.html Business Calculators Equipment Buy vs. Lease BizBuyvsLease.html Business Debt Consolidation Calculator BizConsolidate.html Credit Cards and Debt Management Consolidation Loan Investment Calculator InvestmentDebt.html Insurance Calculators Variable Annuity Calculator Annuity.html Comprehensive Life Insurance Analysis EnhancedLifeIns.html Health Savings Account (HSA) Goal Calculator HSAGoal.html Health Savings Account (HSA) Savings Calculator HSASavings.html Human Life Value HumanLifeValue.html Life Insurance Calculator LifeInsurance.html Investment Calculators Compare Investment Fees CompareFees.html Mutual Fund Expense Calculator FundExpense.html Taxable vs. Tax Advantaged Investments InvestCompare.html Investment Savings and Distributions InvestmentDistribution.html Investment Distributions InvestmentDistribution2.html Investment Loan InvestmentLoan.html Investment Returns InvestmentReturn.html Investment Goal Calculator InvestmentVariables.html Personal Economic Calculator RecoverTime.html Personal Economic Recovery Calculator RecoverTime.html Annual Stock Option Grants StockGrants.html Stock Option Calculator StockOptions.html Mortgage Calculators Rent vs. Buy MortgageRentvsBuy.html Retirement Savings and Planning How Important is Social Security? NoSocial.html Pension Plan Retirement Options PensionOptions.html Traditional IRA Calculator RegularIRA.html 401(k) Savings Calculator Retire401k.html 403(b) Savings Calculator Retire403b.html 457 Savings Calculator Retire457.html 72(t) Distribution Impact Retire72Alt.html Beneficiary Required Minimum Distributions RetireBeneficiary.html Required Minimum Distribution (RMD) RetireDistrib.html Retirement Income RetirementIncome.html Retirement Nestegg Calculator RetirementNestegg.html Retirement Planner RetirementPlan.html Retirement Pension Planner RetirementPlan3.html Retirement Shortfall RetireShort.html Individual 401(k) Savings Calculator RetireSolo401k.html 401(k) Spend It or Save It Calculator Rollover401k.html Roth IRA Calculator RothIRA.html Roth IRA Conversion RothTransfer.html Roth vs. Traditional IRA RothvsRegular.html Roth 401(k) or Traditional 401(k)? RothvsTraditional401k.html RMD & Stretch IRA Calculator StretchIRA.html Savings Calculators College Savings CollegeSavings.html Compare Savings Rates CompareSavings.html Compound Interest and Your Return CompoundInterest.html Savings Calculator CompoundSavings.html Savings Distribution Calculator DistribSavings.html Emergency Savings Calculator Emergency.html Lunch Savings LunchSaver.html Cool Million Millionaire.html Savings Goals Savings.html Savings, Taxes, and Inflation SavingsVariables.html Benefit of Spending Less SpendLess.html Don't Delay Your Savings! WaitCost.html - The definition for Inflation and Expected Inflation Rate has been updated to include CPI data from 2009. The CPI for 2009 was reported by the Minneapolis Federal Reserve as -1.0%. This was not a large enough change from the average to cause a change in the long-term rate of inflation in our definition, however the definition was updated to indicate 2009 data was included. The new definition now reads:
What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2009. The CPI for 2009 was -1.0%, as reported by the Minneapolis Federal Reserve.
This affects the following 23 calculators:
Calculator Type Name HTML File Changed Insurance Calculators Disability Insurance Disability.html Health Savings Account (HSA) Goal Calculator HSAGoal.html Health Savings Account (HSA) Savings Calculator HSASavings.html Human Life Value HumanLifeValue.html Life Insurance Calculator LifeInsurance.html Long Term Care Calculator LongtermCare.html Investment Calculators Investment Savings and Distributions InvestmentDistribution.html Investment Distributions InvestmentDistribution2.html Investment Returns InvestmentReturn.html Investment Goal Calculator InvestmentVariables.html Personal Economic Recovery Calculator RecoverTime.html Mortgage Calculators Rent vs. Buy MortgageRentvsBuy.html Retirement Savings and Planning How Important is Social Security? NoSocial.html Retirement Income RetirementIncome.html Retirement Nestegg Calculator RetirementNestegg.html Retirement Planner RetirementPlan.html Retirement Pension Planner RetirementPlan3.html Retirement Shortfall RetireShort.html Social Security Benefits SocialSecurity.html Company Stock Distribution Analysis Calculator StockRollover401k.html Savings Calculators Cool Million Millionaire.html Savings Goals Savings.html Savings, Taxes, and Inflation SavingsVariables.html
Updates that require modifications to HTML documents
- Health Savings Accounts (HSA)
- Self only coverage 2010 contribution limit $3,050.
- Family coverage 2010 contribution limit $6,150.
- HDHD 2010 required deductible for Self Only coverage $1,200, for Family coverage $2,400.
- HDHP 2010 Maximum out-of-pocket for Self Only coverage $5,950, for Family coverage $11,900.
- Tax table to detemine marginal tax rate updated to 2010 tax rates and income brackets.
Have been finalized for 2010 changes. This includes new contribution limits and rules put into law for 2010. This includes the following:
This affects the following calculators:
HTML File Changed Name HSABusiness.html Employer Benefit HSAContribution.html Health Savings Account (HSA) Contribution Calculator HSASavings.html Health Savings Account (HSA) Savings Calculator HSAvsTraditional.html Health Savings Account (HSA) vs. Traditional Health Plan HSAGoal.html Health Savings Account (HSA) Goal Calculator - Individual 401(k) Contribution Comparison(Individual401kContribution.html): Has been updated for 2010, contribution limits. remain unchanged from 2009. This affects the generated outputs and definitions but no new entry our output fields.
- Individual 401(k) Savings Calculator(RetireSolo401k.html): Has been updated for 2010, contributions limits remain unchanged from 2009. This affects the generated outputs and definitions but no new entry fields.
- Self Employment Tax Calculator (TaxSelfEmployment.html): Have been finalized for the 2009. Minor changes have occurred to the definitions and the calculations, but there have been no additional input and output fields. (Note: the 2010 versions of these calculators will be released 3/31/2010).
- 1040EZ Tax Form (TaxEZ1040.html), Marginal and Effective Tax Rates (TaxMargin.html): Have been finalized for the 2009. Minor changes have occurred to the definitions and the calculations, but there have been no additional input and output fields. Refundable child tax credit and make work pay tax credit both calculated automatically in this version. (Note: the 2010 versions of these calculators will be released 3/31/2010).
The following line has been added to the report to indicate the amount of the Make Work Pay credit: <TR><TD><b>Make work pay tax credit</b></TD><TD>MAKE_WORK_PAY_CREDIT</TD></TR>
- 1040 Tax Estimator (Tax1040.html): Has been finalized for the 2009. This includes extensive changes to the labels and field names to match the actual tax form. Additional changes to the definitions, output pages and input fields have been completed to comply with tax law changes. The form matches the inputs on the 1040 Tax form. Changes include:
- Automatic calculation of additional child tax credit
- New total of "Non-refundable tax credits"
- New total of "Refundable tax credits" which includes Make Work Pay credit, additional child tax credit, and other refundable credits such as the first time home buyers credit
- Added entry for new vehicle sales tax added to calculated increased standard deduction (new defintion added for this item, describing new change).
- Note that the make work pay credit was added in a previous update.
- Estate Tax Planning (EstatePlan.html): This calculator has been updated to the 2010 rates and rules including the repeal of the estate tax for one year in 2010. This has affected the definitions and the calculations. No new input or output fields have been added. A new note has been added that it is likely that some sort of congressional action will take place during 2010 to reinstate some sort of Estate tax. It is as follows:
- It is very important to note that it is very likely that a congressional change will be made in 2010 that could greatly impact estate taxes, and it could possibily be retroactive to the beginning of 2010.
- Long Term Care (LongtermCare.html): The estimated costs have been updated to reflect the cost of 2010 nursing home and home health care costs.
Definition for long term card costs has been updated to:
- This is your current estimated cost of long term care. According to the Genworth Financial 2009 Cost of Care Survey, the estimated average cost for a nursing home stay was $66,886 per year for a semi-private room. This is about $183 per day. The cost for a private room was $74,208 or $203 per day. Assisted living at home can cost more than $33,466 per year or $18.50 per hour for a home healthcare aid. All of these long-term care costs can be considerably higher in larger metropolitan areas.
-
Required Minimum Distributions (RMD) Beneficiary Required Minimum Distributions, Strech IRA Calculator (RetireDistrib.html, RetireBeneficiary.html, StrechIRA.html, SPRetireDistrib.html, SPRetireBeneficiary.html ): The suspension of the Required Minimum Distribution for tax-deferred retirement accounts in 2009 has expired as is no longer available in 2010. This includes distributions from IRAs, 401k(s), 403(b)s and other defined contribution plans. These calculators have been updated so that the RMD is now required and no longer reported as $0 as it was for 2009. The message below has also been removed:
New legislation has suspended all RMDs for 2009. Without the 2009 RMD suspension, the minimum distribution would have been $x.xx."
- Payroll and withholding calculators
Each of these calculators has been updated to the new withholding rates for 2010 as published in IRS Publication 15, Rev Decmber 2009. The associated withholding tables have been updated as well as the calculations. In addition, the definitions have been updated to reflect that the calculator is using the 2010 amounts (even though the actual amout has not changed) for the following: 401(k)/403(b) limits (remain at $16,500 under 50, $22,000 for 50 and over), FICA OASDI (remains at $106,800), and allowances remain at $3650.
This affects the following calculators:
HTML File Changed Name Payroll.html Payroll Deductions PayrollHourly.html Hourly Paycheck Calculator Payroll125.html Section 125 Cafeteria Plan PayrollGross.html Net to Gross Paycheck Calculator 457Payroll.html 457 Payroll Calculator IncomeOneorTwo.html Should my spouse work? SPPayroll.html Efectos de sus Aportaciones a su Jubilaci�n sobre su Cheque de Paga SPRetirePayrollSavings.html Efectos de sus Aportaciones a su Jubilaci�n sobre su Cheque de Paga The 2010 Withholding tables are as follows:
Single Withholding Rates*
Annual taxable income between these amounts
Annual withholding
Withhold additional % of income over this amount
$0.00
$6,050.00
$0.00
$0.00
$6,050.00
$10,425.00
$0.000
plus 10% of income over $6,050.00
$10,425.00
$36,050.00
$437.50
plus 15% of income over $10,425.00
$36,050.00
$67,700.00
$4,281.25
plus 25% of income over $36,050.00
$67,700.00
$84,450.00
$12,193.75
plus 27% of income over $67,700.00
$84,450.00
$87,700.00
$16,716.25
plus 30% of income over $84,450.00
$87,700.00
$173,900.00
$17,691.25
plus 28% of income over $87,700.00
$173,900.00
$375,700.00
$41,827.25
plus 33% of income over $173,900.00
$375,700.00
(no limit)
$108,421.25
plus 35% of income over $375,700.00
Married Withholding Rates*
Annual taxable income between these amounts
Annual withholding
Withhold additional % of income over this amount
$0.00
$13,750.00
plus $0.00
$13,750.00
$24,500.00
$0.00
plus 10% of income over $13,750.00
$24,500.00
$75,750.00
$1,075.00
plus 15% of income over $24,500.00
$75,750.00
$94,050.00
$8,762.50
plus 25% of income over $75,750.00
$94,050.00
$124,050.00
$13,337.50
plus 27% of income over $94,050.00
$124,050.00
$145,050.00
$21,437.50
plus 25% of income over $124,050.00
$145,050.00
$217,000.00
$26,687.50
plus 28% of income over $145,050.00
$217,000.00
$381,400.00
$46,883.50
plus 33% of income over $217,000.00
$381,400.00
(no limit)
101,085.50
plus 35% of income over $381,400.00
- Retirement Contribution Effects on Your Paycheck (RetirePayrollSavings.html, Spanish: SPRetirementPayrollSavings.html, RetirementPayrollSavings2.html): In addition to the Payroll changes described for the calculators above, the contribution limits for retirement plans on this calculator have been updated to reflect that the limit remains at $16,500 for 2010.
- College Savings (CollegeSavings.html, SPCollegeSavings.html (Spanish)), College Planner (CollegePlanner.html): The definition for tuition, room and board, and education cost inflation have been updated to include the average costs for the 2009-10 school year. The defaults have also been changed to reflect the new average cost for the 2009-10 school year and the average cost increases for tuition and room and board. The new information is show below:
U.S. Undergraduate College Costs for 2009-10 School Year
Source: College Board's 2009 Trends in College Pricing, www.collegeboard.comType Tuition and fees Room & Board Total Change from 2008-09 Public 4-Year (in-state tuition) $7,020 $8,193 $15,213 5.9% Public 4-Year (out-of-state tuition) $18,548 $8,193 $26,741 6.0% Private 4-Year $26,273 $9,363 $35,636 4.3% - 401(k) Calculator (Retire401k.html), 401(k) With Profit Sharing (Retire401kProfitShare.html): The definitions and the calculation module have been updated to reflect the 2010 maximum contribution limits of $16,500 annually for those under 50 and $22,000 annually for those 50 and older remain unchanged from 2009.
- 457 Calculator (Retire457.html): The definitions and the calculation module have been updated to reflect the 2010 maximum contribution limits of $16,500 annually for those under 50 and $22,000 annually for those 50 and older remain unchanged from 2009.
- 403b Calculator (Retire403b.html): The definitions and the calculation module have been updated to reflect the 2010 maximum contribution limits of $16,500 annually for those under 50 and $22,000 annually for those 50 and older remain unchanged from 2009.
- Pre-tax or Roth (after tax) Account? (RothvsPreTaxAccount.html): The definitions and the calculation module have been updated to reflect the 2010 maximum contribution limits of $16,500 annually for those under 50 and $22,000 annually for those 50 and older remain unchanged from 2009. In addition, the tax table has been updated to use the 2010 rates.
- 72(t) Calculator: Early withdrawals from retirement accounts (Retire72T.html, Retire72T2.html), 72(t) Distributions: Impact on retirement fund balances (Retire72TAlt.html): The Federal Mid-Term rate has been updated for January 2010. This change affects the calculators default values and the definition of Reasonable Interest Rate For January 2010. For January 2010, 120% of the Federal Mid-Term rate is 2.95%.
- Roth IRA (RothIRA.html), Traditional IRA (RegularIRA.html): These calculators have been updated to 2010 phase out ranges. The maximum annual contribution of $5,000 per individual under 50 and $6,000 per individual over 50 remain the same as 2009. These changes include updates to the calculation module as well as the definitions and the report.
A note has been added to the Roth IRA calculator describing the ability to make a non-deductible IRA contribution and then immediately rolling it over to a Roth IRA. This is currently available to taxpayers that do not qualify for a direct Roth IRA contribution. The message is as follows:
Starting in 2010 high income individuals will have the option to make non-deductible Traditional IRA contributions and then immediately convert them to a Roth IRA. This can effectively eliminate the income phase-out for Roth IRA contributions. This loop-hole for Roth IRA contributions may or may not be available in later years depending on future changes to the IRA law.
- Roth vs. Traditional IRA (RothvsRegular.html): This calculators have been updated to 2010 phase out ranges. The maximum annual contribution of $5,000 per individual under 50 and $6,000 per individual over 50 remain the same as 2009. These changes include updates to the calculation module as well as the definitions and the report. A new calculation has also been added which limits the comparison to contributions amounts that are valid for a ROTH IRA. The ROTH IRA contributions are constrained by the following income phase-outs:
If your income falls in a "phase-out" range you are allowed only a prorated Roth IRA contribution. If your income exceeds the phase-out range, you do not qualify for any Roth IRA contribution. The table below summarizes the income "phase-out" ranges for Roth IRAs.
*For the purposes of this calculator, we assume are not Married filing separately and contributing to a Roth IRA.Tax filing status 2010 Income Phase-Out Range Married filing jointly or Head of household $167,000 to $177,000 Single $105,000 to $120,000 Married filing separately* $0 to $10,000 A note has been added to the calculator describing the ability to make a non-deductible IRA contribution and then immediately rolling it over to a Roth IRA. This is currently available to taxpayers that do not qualify for a direct Roth IRA contribution:
Starting in 2010 high income individuals will have the option to make non-deductible Traditional IRA contributions and then immediately convert them to a Roth IRA. This can effectively eliminate the income phase-out for Roth IRA contributions. This loop-hole for Roth IRA contributions may or may not be available in later years depending on future changes to the IRA law. This calculator assumes that you will not be taking advantage of this option.
- Roth 401(k) or Traditional 401(k)?, Roth 401(k) vs. Traditional 401(k) and your Paycheck (Compare401k.html, Compare401k2.html) Tax rate tables updated to 2010, contribution limit notes updated for 2010. No change in actual limits which remain at $16,500 maximum contribution with $5,500 maximum catchup contribution.
- Retirement Planner, Retirement Pension Planner (RetirementPlan.html, RetirementPlan3.html): Report's summary table reordered to match the input fields on the calculator.
- Canadian Retirement Planner (CARetirementPlan.html, FRRetirementPlan.html): The CPP and OAS defaults have been updated to $948 and $515 respectively (no change to the OAS amount), to reflect the January 2010 maximum OAS and CPP amounts.
- Canadian Tax Free Savings Account (TFSA) Comparison (CATFSACompare.html, FRTFSACompare.html): Definitions have been udpated. No changes to the calculations.
- 2010 Federal Tax Rate table has been added to the following calculators (replacing the 2009 Federal Tax Table)
Calculator Name HTML File Changed 401(k) Net Unrealized Appreciation vs. Rollover StockRollover401k.html Municipal Bond Tax Equivalent Yield TaxEquivYeild.html Mortgage Debt Consolidation MortgageConsolidate.html Roth 401(k) or Traditional 401(k)? RothvsTraditional401k.html, Compare401k.html Pre-tax or Roth (after tax) Account? RothvsPreTaxAccount.html 401(k) Spend It or Save It Calculator Rollover401k.html Investment Goal Calculator InvestmentVariables.html NOTE:The actual tax calculators will be updated at the end of the tax season, in the 3/31/2009 update.
- Social Security Calculations
Calculations and definitions updated for 2010, however there was no change to the income limit of $106,800 for FICA or the annual maximum benefits of $27,876 per year for a single person and 1.5 times this amount for a married couple.
These changes affect the following calculators:
Calculator Name HTML File Changed Social Security Calculator SocialSecurity.html How important is Social Security? NoSocial.html Retirement Planner RetirementPlan.html Retirement Pension Planner RetirementPlan3.html Retirement Nestegg Calculator RetirementNestegg.html Your Number & Retirement Income Plan RetirementNumber.html The definitions of Social Security in each of these calculators has been updated to the following:
Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits automatically increases each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that only one of the spouses work. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice - once for each spouse and their respective income. This calculator provides only an estimate of your benefits.
The calculations use the 2010 FICA income limit of $106,800 with an annual maximum Social Security benefit of $27,876 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.
Updates that do not require modifications to HTML documents
- 401(k) Savings Calculator (Retire401k.html, SPRetire401k.html): Employer match limit increased from 200% to 400%. No impact on the calculation, this only allows the entry of up to 400% in the employer match field.
- Snowball Debt Elimination Calculator (SnowBall2.html): Credit card maximum interest rate increased from 30% to 50%.