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Maintenance Update 06 30 2021

Calculator update notes for 6-30-2021.

Overview:

The June 30th update for 2021 is limited to minor fixes, enhancements for most calculators. Except for the 72T calculator and RMD calculators. These calculators have been updated to include the new life expectancy tables that are required for to use beginning in 2022. This update is optional unless you have received instructions from us or have one of the calculators specifically mentioned in the updated notes below. All updates are cumulative, by skipping this limited update any changes to your package will be included in the next update release. To view the previous update package please see Calculator Update 3/31/2021.

Update instructions:

  1. Download the latest version of your calculator update from your download site, found on your update e-mail notice.
  2. Run the update package (KJECalc.exe). This is a self-extracting zip file. (Or unzip the KJECalc.zip file if you are using a non-windows platform.)
  3. When prompted for a directory, you may use the default 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.
  4. Copy the new files to your current deployment, replacing files with identical files names with the new ones.

If you wish, you can download the full calculator package from the same location, and refresh all files provided by KJE for your calculators. This package includes any site specific changes done for you by KJE, but will not include any customizations by you or your web-developers. Please contact us if you have questions regarding this new update package. If you are experiencing format issues, or it has been more than a year since you have installed an update package, it is recommended you use the full installation package.

Master Changes (affects all V3 calculators):

  1. CSS and Layout refinement: Numerous fine-tuning adjustments to the V3 core deployment. This includes refinements to fonts, display and mobile device compatibility improvements.

  2. ADA and Screen Readers: Continued improvement ADA and screen reader functionality are included in this update to meet or exceed accessibility specification WCAG 2.1 Level AA and Section 508.

  3. RMD and 72T calculators: Life Expectacncy table updates to RMD and 72T calculators to comply with new tables for calculations that apply to 2022 and beyond.

Calculator specific updates:

  1. 1040 Tax Calculator (Tax1040.html): A new option has been added to the deductions section of the calculator to allow you to choose to NOT use the standard deduction even if it would produce a lower tax amount. This option can be used if you have a situation where you do not wish to use the standard deduction, or you are not allowed to use the standard deduction. For example, you are not allowed to use the standard deduction if you are married filing separately and your spouse itemized their deductions on their return. The new option is as follows:
    Do not use standard deduction
    Check this box to use your Schedule A Itemized Deductions even if the standard deduction would produce a lower tax amount. For example, if you are married filing separately and your spouse is itemizing their deductions, you are not able to use the standard deduction on your return. Checking this box will calculate your tax with your itemized deductions and disregard the standard deduction.

  2. Compliance with IRS 25 CFR:

    Effective January 1, 2022 all Required Minimum Distributions and 72(t)distributions are required to be calculated with updated Life Expectancy Distribution Tables and Mortality Rate Tables. The new tables were finalized by the IRS and Department of the Treasury on 11/12/2020 as part 26 CFR. https://public-inspection.federalregister.gov/2020-24723.pdf.

    All calculators have been updated to use the new tables for 2022 calculations, but retain the older tables for 2021 and earlier calculations. For calculators without an entry for the calculation year, the current calendar year is assumed. For calculators with a distribution year, the entered year will determine which tables are used. For calculators that span multiple years, each year where a distribution is calculated will determine which tables are used. For example, for a distribution illustration from 2021 through 2025, the existing older tables will be used in year 2021 and the updated tables will be used in all subsequent years.

    Beneficiary distribution calculations require a first-year life expectancy lookup and then the applicable life expectancy is reduced by 1 year for each subsequent annual distribution calculation. The life expectancy computation when using the new tables is as follows:

    1. Life expectancy is determined using age of account beneficiary as of 12/31 of the year of the first distribution. For a distribution year that is 2021 or earlier the existing life expectancy tables are used, for 2022 and beyond the new life expectancy tables are used. It is important to note the distribution year determines the life expectancy table to use, not the year of the first distribution.

    2. One year is subtracted from the life expectancy (determined in the prior step) for each year that has passed since distributions started.

    3. For distributions that started prior to 2022, the new tables will increase the life expectancy calculated for years 2022 and beyond, compared to the original calculation, regardless of how many years have passed since the year of the first distribution.

  3. 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 July 2020. This change affects the calculators default values and the definition of Reasonable Interest Rate For July 2021. For July 2021, 120% of the Federal Mid-Term rate has changed to 1.20%.

    The update includes new life expectancy tables and mortality rates which replace the existing tables. For 2021 calculations the old tables will be used, for calculation that are on or after January 1, 2022, life expectancies are calculated with updated life expectancy tables finalized by the IRS in November 2020.

  4. Required Minimum Distribution (RMD) calculation update: Changes affect all calculators with Required Minimum Distributions (RMD) calculations. The update adds the new life expectancy tables for all distributions that happen for year 2022 and later. In addition, the beneificary calculations now allow for an RMD year that the same year as the year an account owner dies (in this situation the RMD is zero, but in many circumstances it is useful to have that reported along with potential future distributions). Refinements in the presentation of the SECURE Act are also included. Please see SECURE ACT and CARES ACT for more information. Calculators affected:

    Required Minimum Distributiuon Updated Calculators
    RMD & Stretch IRA CalculatorUse this calculator to help determine how you can stretch out your retirement plan distributions for as long as possible.
    Required Minimum Distribution (RMD)Use this calculator to determine your Required Minimum Distributions (RMD) as an account owner of a retirement account. This financial calculator will also look at potential future year's distribution requirements.
    Required Minimum Distribution (RMD) - Current YearUse this calculator to determine your Required Minimum Distributions (RMD) as an account owner of a retirement account for the current year.
    Required Minimum Distribution (RMD) - Future ProjectionUse this calculator to create a projection of your future Required Minimum Distributions (RMD) as an owner of a qualified retirement account.
    Required Minimum Distribution (RMD) - with Stretch ProjectionUse this calculator to create a stretch projection for Required Minimum Distributions (RMD) of a qualified retirement account.
    457 Plan Roth Conversion with Distributions CalculatorUse this calculator to help determine if converting your 457 plan account to a 457 Roth plan account is a good move for you.
    Roth 401(k) Conversion CalculatorThis calculator will show the advantage, if any, of converting your pre-tax 401(k) to a Roth 401(k).
    Roth IRA Conversion with Distributions CalculatorUse this calculator to help determine how you can stretch out your retirement plan distributions for as long as possible.

  5. Beneificary Required Minimum Distribution (RMD) calculation update: Changes affect beneficiary calculators with Required Minimum Distributions (RMD) calculations. The update adds the new life expectancy tables for all distributions that happen for year 2022 and later. In addition, the beneificary calculations now allow for an RMD year that the same year as the year an account owner dies (in this situation the RMD is zero, but in many circumstances it is useful have that reported along with potential future distributions). This changes the previous limitation that the minimium RMD year was the year after the account owners death which is the first year any RMD is required.

    Beneficiary Required Minimum Distributiuon Updated Calculators
    Beneficiary Required Minimum Distributions (RMD)Use this calculator to determine your Required Minimum Distributions (RMD) as a beneficiary of a retirement account.
    Beneficiary Required Minimum Distributions (RMD) - Current YearUse this calculator to determine your Benfificary Required Minimum Distributions (RMD) of a retirement account for the current year.
    Beneficiary Required Minimum Distributions (RMD) - Designated Eligible BeneficiaryUse this calculator to create a projection of your future Required Minimum Distributions (RMD) as a "Eligible Designated Beneficiary" of a qualified retirement account or if the original account owner died before January 1, 2020.
    Beneficiary Required Minimum Distributions (RMD) - Spouse Inherited IRAUse this calculator to create a future projection and Required Minimum Distributions (RMD) as a spouse beneficiary electing not to treat the inherited retirement account as his/her own.