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Maintenance Update 12 31 2011

Calculator update notes for 12-31-2011.

Financial Calculator Update 12/31/2011

The quarterly update for 12/31/2011 is a large update, affecting almost every calculator. The majority of the changes affect the functionality of the calculations, updating them to 2012 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 9/30/2012 update: 9/30/2011 Update. (The 12/31/2011 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*:

  1. Download the latest version of your calculators from your download site, found on your update e-mail notice.
  2. 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.)
  3. 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.
  4. 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.
  5. Replace your current dinkytown.jar file with the new version.
  6. Replace all files with the extension "class" with the new version.
  7. 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.

  1. Download the latest version of your calculators from your download site, found on your update e-mail notice.
  2. 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.)
  3. 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.
  4. 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.)

    NONE

Master Changes (HTML Modification required, affects all or most calculators.)

  1. 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: 4.50% (reduced from 5.00%)
    • 15 Year Fixed rate: 4.00% (reduced from 4.50%)
    • Adjustable Rate (mortgage): 4.00% (no change)
    • Equity Line of Credit: 7.5% (no change)
    • Credit cards: 16.0% (no change)

    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 ChangedName
    Biweekly.htmlBi-weekly Payment Calculator
    ExistingBiweekly.htmlBi-weekly Payments for an Existing Mortgage
    FHAMortgageQualifier.htmlFHA Mortgage Loan Calculator
    MortgageAdjustable.htmlAdjustable Rate Mortgage Calculator
    MortgageApr.htmlMortgage APR Calculator
    MortgageAprAdjustable.htmlAPR Calculator for Adjustable Rate Mortgages
    MortgageArmvsFixed.htmlARM vs. Fixed Rate Mortgage
    MortgageBalloon.htmlBalloon Mortgages
    MortgageBlend.htmlBlended Rate Mortgage Calculator
    MortgageLoan.htmlMortgage Loan Calculator
    MortgageCompare.htmlMortgage comparison: 15 years vs. 30 years
    MortgageConsolidate.htmlMortgage Debt Consolidation
    MortgageFixedvsIO.htmlFixed Rate Mortgage vs. Interest Only Mortgage
    MortgageFixedvsLibor.htmlFixed Rate Mortgage vs. LIBOR ARM
    MortgageFixedvsNegAm.htmlOption ARM vs. Fixed Rate Mortgage
    MortgageIncome.htmlMortgage Required Income
    MortgageInterestOnly.htmlInterest Only Mortgage Calculator
    MortgageIOAdjustable.htmlInterest Only ARM Calculator
    MortgageLoan2.htmlMortgage Loan Calculator (PITI)
    MortgageMax.htmlMaximum Mortgage
    MortgagePayoff.htmlMortgage Payoff
    MortgagePoints.htmlMortgage Points Calculator
    MortgageQualifier.htmlMortgage Qualifier
    MortgageRefinance.htmlRefinance Breakeven
    MortgageRentvsBuy.htmlRent vs. Buy
    MortgageTaxes.htmlMortgage Tax Savings Calculator
    ReverseMortgage.htmlReverse Mortgage Calculator
    ShouldIRefi.htmlRefinance Interest Savings

  2. 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: 7% (Reduced from 8%)
    • Conservative/retirement market rate: 4% (Reduced from 6%)
    • Savings/bank rate: 0.25% (Reduced from 1%)
    • Federal mid-term rate: 1.40% (Used for 72T calculators only, 120% Federal Mid-Term Rate http://www.irs.gov/app/picklist/list/federalRates.html)

    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.

  3. The definition for Rate of Return has been updated to include the S&P 500 average to include 2011.

    New definition:
    The actual rate of return is largely dependent on the type of investments you select. The S&P 500 for the ten years ending on December 31st, 2011 had an annual compounded rate of return of 2.92%, including reinvestment of dividends. From January 1970 through the end of 2011, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.01% (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 0.25% 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 66 calculators:

    Calculator TypeNameHTML File Changed
     Auto CalculatorsLease vs. BuyBuyvsLease.html
     Business CalculatorsEquipment Buy vs. LeaseBizBuyvsLease.html
     Business Debt Consolidation CalculatorBizConsolidate.html
     Credit Cards and Debt ManagementConsolidation Loan Investment CalculatorInvestmentDebt.html
     Insurance CalculatorsVariable Annuity CalculatorAnnuity.html
     Comprehensive Life Insurance AnalysisEnhancedLifeIns.html
     Health Savings Account (HSA) Goal CalculatorHSAGoal.html
     Health Savings Account (HSA) Savings CalculatorHSASavings.html
     Human Life ValueHumanLifeValue.html
     Life Insurance CalculatorLifeInsurance.html
     Investment CalculatorsAnnual Rate of Return CalculatorAnnualReturn.html
     Lump Sum Annual Return CalculatorAnnualReturnAmount.html
     Compare Investment FeesCompareFees.html
     Mutual Fund Expense CalculatorFundExpense.html
     Future Value CalculatorFutureValue.html
     Lump Sum Future Value CalculatorFutureValueAmount.html
     Taxable vs. Tax Advantaged InvestmentsInvestCompare.html
     Investment Savings and DistributionsInvestmentDistribution.html
     Investment DistributionsInvestmentDistribution2.html
     Investment LoanInvestmentLoan.html
     Investment ReturnsInvestmentReturn.html
     Investment GoalInvestmentVariables.html
     IRR CalculatorIRRReturn.html
     Present Value CalculatorPresentValue.html
     Lump Sum Present Value CalculatorPresentValueAmount.html
     Personal Economic Recovery CalculatorRecoverTime.html
     Annual Stock Option GrantsStockGrants.html
     Stock Option CalculatorStockOptions.html
     Mortgage CalculatorsRent vs. BuyMortgageRentvsBuy.html
     Retirement Savings and PlanningHow Important is Social Security?NoSocial.html
     Pension Plan Retirement OptionsPensionOptions.html
     Traditional IRA CalculatorRegularIRA.html
     401(k) Savings CalculatorRetire401k.html
     403(b) Savings CalculatorRetire403b.html
     457 Savings CalculatorRetire457.html
     72(t) Distribution ImpactRetire72Alt.html
     Beneficiary Required Minimum DistributionsRetireBeneficiary.html
     Required Minimum Distribution (RMD)RetireDistrib.html
     How long will my retirement savings last?RetirementDistribution.html
     Retirement IncomeRetirementIncome.html
     Retirement Nestegg CalculatorRetirementNestegg.html
     Retirement PlannerRetirementPlan.html
     Retirement Pension PlannerRetirementPlan3.html
     Retirement Planner with Retirement EarningsRetirementPlan4.html
     Retirement ShortfallRetireShort.html
     Individual 401(k) Savings CalculatorRetireSolo401k.html
     401(k) Spend It or Save It CalculatorRollover401k.html
     Roth IRA CalculatorRothIRA.html
     Roth IRA ConversionRothTransfer.html
     Roth vs. Traditional IRARothvsRegular.html
     Roth vs. Traditional 401(k)RothvsTraditional401k.html
     RMD & Stretch IRA CalculatorStretchIRA.html
     Savings CalculatorsCollege SavingsCollegeSavings.html
     Compare Savings RatesCompareSavings.html
     Compound Interest and Your ReturnCompoundInterest.html
     Savings CalculatorCompoundSavings.html
     Savings Distribution CalculatorDistribSavings.html
     Emergency Savings CalculatorEmergency.html
     Lunch SavingsLunchSaver.html
     Cool MillionMillionaire.html
     Savings GoalsSavings.html
     Savings, Taxes, and InflationSavingsVariables.html
     Benefit of Spending LessSpendLess.html
     Vice SavingsViceSaver.html
     Don't Delay Your Savings!WaitCost.html

  4. The definition for Inflation and Expected Inflation Rate has been updated to include CPI data from 2011. The CPI through October 2011 was estimated by the Minneapolis Federal Reserve as 3.8% (the annualized rate), but a downward adjustment for 2010 resulted in a net decrease in the long term rate of inflation to 3.0% from 3.1%. 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). From 1925 through 2011 the CPI has a long-term average of 3.0% annually. Over the last 31 years highest CPI recorded was 13.5% in 1980.

    This affects the following 25 calculators:

    Calculator TypeNameHTML File Changed
     Insurance CalculatorsDisability InsuranceDisability.html
     Health Savings Account (HSA) Goal CalculatorHSAGoal.html
     Health Savings Account (HSA) Savings CalculatorHSASavings.html
     Human Life ValueHumanLifeValue.html
     Life Insurance CalculatorLifeInsurance.html
     Long Term Care CalculatorLongtermCare.html
     Investment CalculatorsInvestment Savings and DistributionsInvestmentDistribution.html
     Investment DistributionsInvestmentDistribution2.html
     Investment ReturnsInvestmentReturn.html
     Investment GoalInvestmentVariables.html
     Personal Economic Recovery CalculatorRecoverTime.html
     Mortgage CalculatorsRent vs. BuyMortgageRentvsBuy.html
     Retirement Savings and PlanningHow Important is Social Security?NoSocial.html
     How long will my retirement savings last?RetirementDistribution.html
     Retirement IncomeRetirementIncome.html
     Retirement Nestegg CalculatorRetirementNestegg.html
     Retirement PlannerRetirementPlan.html
     Retirement Pension PlannerRetirementPlan3.html
     Retirement Planner with Retirement EarningsRetirementPlan4.html
     Retirement ShortfallRetireShort.html
     Social Security BenefitsSocialSecurity.html
     Company Stock Distribution Analysis CalculatorStockRollover401k.html
     Savings CalculatorsCool MillionMillionaire.html
     Savings GoalsSavings.html
     Savings, Taxes, and InflationSavingsVariables.html

Updates that require modifications to HTML documents

  1. Health Savings Accounts (HSA)

      Have been finalized for 2012 changes. The limits and amounts were increased slightly from 2011 for all HSA calculations. All calculators were updated to indicate the new 2012 amounts. Income tax brackets and rates were updated to 2012. This includes the following:

      1. Self only coverage 2012 contribution limit $3,100.
      2. Family coverage 2012 contribution limit $6,250.
      3. Catch-up contribution for plan owner's who are 55 of over remains unchanged for 2012 at $1,000.
      4. HDHD 2012 required deductible for Self Only coverage $1,200, for Family coverage $2,400 (no change from 2011)
      5. HDHP 2012 Maximum out-of-pocket for Self Only coverage $6,050, for Family coverage $12,100.
      6. Tax table to detemine marginal tax rate updated to 2012 tax rates and income brackets.

    This affects the following calculators:

    HTML File ChangedName
    HSABusiness.htmlEmployer Benefit
    HSAContribution.htmlHealth Savings Account (HSA) Contribution Calculator
    HSASavings.htmlHealth Savings Account (HSA) Savings Calculator
    HSAvsTraditional.htmlHealth Savings Account (HSA) vs. Traditional Health Plan
    HSAGoal.htmlHealth Savings Account (HSA) Goal Calculator

  2. Individual 401(k) Contribution Comparison(Individual401kContribution.html): Has been updated for 2012, contribution limits have increased for 2012 and affects the generated outputs and definitions but no new entry our output fields. Calculator has been updated for 2012 assuming the Self-Employment tax rules revert to the pre-2011 levels. Specifically, the FICA employee portion is assumed to be 4.2% for 2012 (vs. 6.2%).

  3. Individual 401(k) Savings Calculator(RetireSolo401k.html): Has been updated for 2012, including an increase in 401(k) contributions to $17,000 and total defined benefit contribution limit has increased to $50,000 for 2012. Calculator has been updated for 2012 assuming the Self-Employment tax rules revert to the pre-2011 levels. Specifically, the FICA employee portion is assume dto be 4.2% for 2012 (vs. 6.2%).

  4. Self-Employment Tax Calculator (TaxSelfEmployment.html): Has been finalized for the 2011. Minor changes have occurred to the definitions and the calculations, but there have been no additional input and output fields. (Note: the 2012 version of this calculator will be released 3/31/2012 which will include any final legislation for 2012 the FICA tax rate for employee's portion of the tax.)

  5. 1040EZ Tax Form (TaxEZ1040.html), Marginal and Effective Tax Rates (TaxMargin.html): Have been finalized for the 2011. 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 2012 versions of this calculators will be released 3/31/2012).

  6. 1040 Tax Estimator (Tax1040.html): Has been updated for changes in 2011. The final version of the 1040 tax form for 2011, and matching of labels and field namesis also complete. Additional input fields were added. (Note: the 2012 versions of this calculators will be released 3/31/2012).

  7. Estate Tax Planning (EstatePlan.html, SPEstatePlan.html): This calculator has been updated to the 2012 rates and rules. This includes a maximum rate of 35% that went into effect in 2011 and and a $5,120,000 exemption for 2012 ( increased from $5 million dollars in 2011). The new estate tax rules expire at the end of 2012 and revert back to the original law pre-2001. 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 in the future, although we do assume the resumption of the old rules starting in 2013.

  8. Long Term Care (LongtermCare.html): The estimated costs have been updated to reflect the cost of 2012 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 2011 Cost of Care Survey, the estimated average cost for a nursing home stay was $70,445 per year for a semi-private room. This is about $193 per day. The cost for a private room was $77,745 or $213 per day. Assisted living at home can cost more than $38,220 per year or $19.00 per hour for a home healthcare aid. All of these long-term care costs can be considerably higher in larger metropolitan areas.

  9. Payroll and withholding calculators

    Each of these calculators has been updated to the new withholding rates for 2012 as published in IRS Notice 1036 (Rev. December 2011) Income Tax Withholding Tables for 2012. 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 2012 amounts for the following: 401(k)/403(b) limits (increased to $17,000 under 50, $22,500 for 50 and over), FICA OASDI ($110,100 maximum, employee rate 4.2% for 2012), and allowances at $3800.

    This affects the following calculators:

    HTML File ChangedName
    Payroll.htmlPayroll Deductions
    PayrollHourly.htmlHourly Paycheck Calculator
    Payroll125.htmlSection 125 Cafeteria Plan
    PayrollGross.htmlNet to Gross Paycheck Calculator
    457Payroll.html457 Payroll Calculator
    IncomeOneorTwo.htmlShould my spouse work?
    RetirePayrollSavings.htmlRetirement Contribution Effects on Your Paycheck
    RetirePayrollSavings2.htmlRetirement Contribution Effects on Your Paycheck
    SPPayroll.htmlCheque deducciones y retenciones
    SPRetirePayrollSavings.htmlEfectos de sus Aportaciones a su Jubilación sobre su Cheque de Paga

    The 2012 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

    $2,150.00

    $0.00

     

    $2,150.00

    $10,850.00

    $0.00

    plus 10% of income over $2,150.00

    $10,850.00

    $37,500.00

    $870.00

    plus 15% of income over $10,850.00

    $37,500.00

    $87,800.00

    $4,867.50

    plus 25% of income over $37,500.00

    $87,800.00

    $180,800.00

    $17,442.50

    plus 28% of income over $87,800.00

    $180,800.00

    $390,500.00

    $43,482.50

    plus 33% of income over $180,800.00

    $390,500.00

    (no limit)

    $112,683.50

    plus 35% of income over $390,500.00

    *Source: http://www.irs.gov Notice 1036 (Rev. December 2011) Income Tax Withholding Tables for 2012

    Married Withholding Rates*

    Annual taxable income between these amounts

    Annual withholding

    Withhold additional % of income over this amount

    $0.00

    $8,100.00

    $0.00

     

    $8,100.00

    $25,500.00

    $0.00

    plus 10% of income over $8,100.00

    $25,500.00

    $78,800.00

    $1,740.00

    plus 15% of income over $25,500.00

    $78,800.00

    $150,800.00

    $9,735.00

    plus 25% of income over $78,800.00

    $150,800.00

    $225,550.00

    $27,735.00

    plus 28% of income over $150,800.00

    $225,550.00

    $396,450.00

    $48,665.00

    plus 33% of income over $225,550.00

    $396,450.00

    (no limit)

    $105,062.00

    plus 35% of income over $396,450.00

    *Source: http://www.irs.gov Notice 1036 (Rev. December 2011) Income Tax Withholding Tables for 2012

  10. 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 the new limit of $17,000 for 2012.

  11. 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 2010-11 school year. The defaults have also been changed to reflect the new average cost for the 2011-12 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 2011-12 School Year
    Source: College Board's 2011 Trends in College Pricing, www.collegeboard.com
    TypeTuition and feesRoom & BoardTotalChange from 2010-11
    Public 4-Year (in-state tuition)$8,244$8,887$17,1316.0%
    Public 4-Year (out-of-state tuition)$20,770$8,887$29,6575.2%
    Private 4-Year$28,500$10,089$38,5894.4%

  12. 401(k) Calculator (Retire401k.html), 401(k) With Profit Sharing (Retire401kProfitShare.html): The definitions and the calculation module have been updated to reflect the 2012 maximum contribution limits of $17,000 (a $500 increase from 2011) annually for those under 50 and $22,500 (no change) annually for those 50 and older.

  13. 457 Calculator (Retire457.html): The definitions and the calculation module have been updated to reflect the 2012 maximum contribution limits of $17,000 (a $500 increase from 2011) annually for those under 50 and $22,500 (no change) annually for those 50 and older.

  14. 403b Calculator (Retire403b.html): The definitions and the calculation module have been updated to reflect the 2012 maximum contribution limits of $17,000 (a $500 increase from 2011) annually for those under 50 and $22,500 (no change) annually for those 50 and older.

  15. Pre-tax or Roth (after tax) Account? (RothvsPreTaxAccount.html): The definitions and the calculation module have been updated to reflect the 2012 maximum contribution limits of $17,000 (a $500 increase from 2011) annually for those under 50 and $22,500 (no change) annually for those 50 and older. In addition, the tax table has been updated to use the 2012 rates.

  16. 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 2012. This change affects the calculators default values and the definition of Reasonable Interest Rate For January 2012. For January 2012, 120% of the Federal Mid-Term rate is 1.40%.

  17. Roth IRA (RothIRA.html), Traditional IRA (RegularIRA.html): These calculators have been updated to 2012 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 2011. These changes include updates to the calculation module as well as the definitions and the report.

  18. Roth vs. Traditional IRA (RothvsRegular.html): This calculators have been updated to 2012 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 2011. 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.

    Tax filing status2012 Income Phase-Out Range
    Married filing jointly or Head of household$173,000 to $183,000
    Single $110,000 to $125,000
    Married filing separately*$0 to $10,000
    *For the purposes of this calculator, we assume you are not Married filing separately and contributing to a Roth IRA.

  19. Roth 401(k) or Traditional 401(k)?, Roth 401(k) vs. Traditional 401(k) and your Paycheck, Roth vs Traditional 401(k) (Compare401k.html, Compare401k2.html, RothvsTraditional401k.html) Tax rate tables updated to 2012, contribution limit notes updated for 2012. The definitions and the calculation module have been updated to reflect the 2012 maximum contribution limits of $17,000 (a $500 increase from 2011) annually for those under 50 and $22,500 (no change) annually for those 50 and older.

  20. Retirement Planner, Retirement Pension Planner, Retirement Planner with Retirement Earnings (RetirementPlan.html, RetirementPlan3.html,RetirementPlan4.html): Calculations and definitions for Social Security updated. (See Social Security calculator update for details).

  21. Canadian Retirement Planner (CARetirementPlan.html, FRRetirementPlan.html): The CPP and OAS defaults have been updated to $986.67 and $540.12 respectively, to reflect the January 2012 maximum CPP and OAS amount. Source: CPP: http://www.servicecanada.gc.ca/eng/isp/pub/factsheets/rates.shtml, OAS: http://www.servicecanada.gc.ca/eng/isp/oas/oasrates.shtml

  22. 2012 Federal Tax Rate table has been added to the following calculators (replacing the 2011 Federal Tax Table)
    Calculator NameHTML File Changed
    401(k) Net Unrealized Appreciation vs. RolloverStockRollover401k.html
    Municipal Bond Tax Equivalent YieldTaxEquivYeild.html
    Mortgage Debt ConsolidationMortgageConsolidate.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 CalculatorRollover401k.html
    Investment Goal CalculatorInvestmentVariables.html
    Roth IRA ConversionRothTransfer.html
    Roth IRA Conversion with DistributionsRothConversion.html
    Retirement Plan WithdrawalRetirementWithdrawal.html
    REIT Tax-Equivalent DistributionREITTaxEquivYield.html
    Health Savings Account (HSA) Contribution CalculatorHSAContribution.html
    Health Savings Account (HSA) Savings CalculatorHSASavings.html
    Health Savings Account (HSA) vs. Traditional Health PlanHSAvsTraditional.html
    Taxable vs. Tax Advantaged InvestmentsInvestCompare.html

    NOTE:The actual tax calculators will be updated at the end of the tax season, in the 3/31/2012 update.

  23. Social Security Calculations

    Calculations and definitions updated for 2012, the income limit of $110,100 for FICA or the annual maximum benefits of $30,156 per year for a single person and 1.5 times this amount for a married couple.

    These changes affect the following calculators:

    Calculator NameHTML File Changed
    Social Security CalculatorSocialSecurity.html
    How important is Social Security?NoSocial.html
    Retirement PlannerRetirementPlan.html
    Retirement Pension PlannerRetirementPlan3.html
    Retirement Nestegg CalculatorRetirementNestegg.html
    Your Number & Retirement Income PlanRetirementNumber.html
    Retirement Planner with Retirement EarningsRetirementPlan4.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 2012 FICA income limit of $110,100 with an annual maximum Social Security benefit of $30,156 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.