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Maintenance Update 12 31 2019


Overview: Financial Calculator Update 12/31/2019


The quarterly update for 12/31/2019 is a large update, affecting every calculator. The majority of the changes affect the functionality of the calculations, updating them to 2020 rules and regulations. The most significant calculation changes in this update were to the retirement, savings, and tax calculators. Additional changes have also been made changes for continued ADA support. All standard calculators are meet accessibility specification WCAG 2.1 Level AA and Section 508.

"Setting Every Community Up for Retirement Security Act", better known as the SECURE Act was signed into U.S. law on December 20th, 2019 (technically it was an amendment to a much larger funding bill). The SECURE Act has a significant impact on retirement distributions. All affected calculators have been updated, both in definitions and functionality, to incorporate the new law as it now is understood. It is expected that the IRS will release further procedures to implement the SECURE Act. We expect at least one more update in 2020 to accomodate IRS published revenue procedures.

As of this update, Internet Explorer 8 (IE8) is no longer supported. Although official support of IE8 ended on 12/31/2018 we continued to package specific IE8 required files and code in our download package. Starting with this update conditional code and files specific to IE8 are no longer provided. Microsoft ended all support for IE8 on 1/12/2016. Internet Explorer 9 support will continue through 12/31/2020.

All maintenance releases are cumulative, so if you apply this update, you will have all previous calculator updates as well. For your reference you can view the previous update notes here: 9/30/2019 Update.

For more detailed information please see our frequently asked questions: FAQ: V3 Frequently Asked Questions


Update Instructions


For more detailed information please see our deployment documentation: V3 Deployment Information

  1. Download the latest update package for your calculators from your download site, found on your update e-mail notice.

  2. Execute the KJEUpdate.exe file from your download. This is a self-extracting zip file. (Or unzip the KJEUpdate.zip file if you are using a non-windows platform.) If you see a warning message, you can safely continue. 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 or staging environment. One directory will be created with no subdirectories.

  3. Replace all files provided in update package. The update package includes all JS files and CSS files that are required to update the content of your calculators. IMPORTANT! The update package does not contain any HTML files or the KJESiteSpecific.js or KJESiteSpecific.css files. These files are not required for an upgrade, and replacing them may result in overwriting custom changes for your website installation. If you use the full installation package and have changed the file KJESiteSpecific.js or KJESiteSpecific.css files do not replace them.

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.

Please note, if you have a Servlet or other custom deployment, installation instructions for your package will found on your download page or provided separately.


Update Changes 12/31/2019


The V3 (HTML5/JavaScript) calculators do not require any edits or modifications to HTML pages, all changes are encapsulated within the JS files provided.

  1. ADA requirements for WCAG 2.1 level AA and Section 508

    All calculators follow the ADA guidelines to meet accessibility specification WCAG 2.1 Level AA and Section 508. We continue to refine our ADA support with this update. Over the past year all calculators have been tested and updated to include ADA support, this includes:

    1. Improved keyboard access and continued review and improvement of screen reader compatibility.
    2. Deep scans of all calculators with:

      SortSite:
      https://www.powermapper.com/products/sortsite/checks/browser-compatibility/

      WebAim:
      https://wave.webaim.org/

      We will continue to monitor and update our software to maintain compliance and ensure any future compliance issues are resolved quickly. If you have a specific calculator on your site where you have a question please feel free to contact us.

  2. Improved Graphic Interface

    Improvements to the graphical user interface continue with this update. This includes refined keyboard only use of the calculator help icons.

  3. The SECURE Act of 2019 was signed into law on December 20th, 2019. All affected calculators were updated to comply with the Act.

    1. SECURE Act of 2019 new age for starting Required Minimum Distributions (RMD):

      The Act changed the age that RMDs must begin and for most account owners. For account owners born after 6/30/1949 RMDs are required now to start at age 72. Account owners born on 6/30/1949 or earlier continue to use 70 1/2 as their start age. This also means that if RMDs have already started for an account, you must continue the distributions even if you are not 72.

      Generally, for account owners and their spouses, the SECURE Act did not change how the RMD is calculated; it only changed the age that they start.

    2. SECURE Act of 2019 most Beneficiaries can't stretch distributions beyond 10 years

      Allowing the beneficiary of a retirement account to stretch out distributions over their life time has been significantly impacted by the SECURE Act of 2019. Previously, all beneficiaries had this option. With the new law only designated eligible beneficiaries are allowed this type of minimum distribution. If you are not a designated eligible beneficiary, you have until 12/31 of the year that contains the 10th anniversary of the original account owner's death to withdraw all funds from the account. There are no minimum withdrawals during this 10 year period, but all funds must be withdrawn before the deadline to avoid significant penalties. Designated eligible beneficiaries are a surviving spouse, a child of the account owner (but generally only until they are 18, at that point the 10 year rule begins) or a chronically ill individual. For more information please see Modification of Required Distribution Rules for Designated Beneficiaries.

    SECURE Act of 2019 Updated Calculators

    Put these calculators on your website!
    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.
    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) - Future ProjectionUse this calculator to create a projection of your future Required Minimum Distributions (RMD) as a "Designated Eligible Beneficiary" of a qualified retirement account.
    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.
    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.

    IMPORTANT! The calculators have been updated for the SECURE Act of 2019. However, while the new law is effective as of January 1st, 2020 the IRS has not released procedures for its implementation. Future IRS published procedures may have an impact on enforcement and interpretation of the Act.

  4. The definition for Rate of Return has been updated to include 2019.

    New definition:
    The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2019, had an annual compounded rate of return of 13.2%, including reinvestment of dividends. From January 1, 1970 to December 31st 2019, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.7% (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 financial institution 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 investment funds and/or investment companies may charge.

    New definition Spanish Definition:
    Es la tasa compuesta anual de rendimiento que usted prevé lograr con sus ahorros o inversiones. La tasa de rendimiento real depende en gran parte de los tipos de inversiones que usted escoja. En los 10 años que terminaron el 31 de diciembre de 2019, el Índice Standard & Poor's 500® (S&P 500®) tuvo una tasa compuesta anual de rendimiento de 13.2%, incluyendo la reinversión de los dividendos. Del 1o de enero de 1970 al 31 de diciembre de 2018, el promedio de la tasa compuesta anual de rendimiento de S&P 500®, incluyendo la reinversión de los dividendos, fue aproximadamente 10.7% (fuente: www.standardandpoors.com). Desde 1970, el mayor rendimiento en un período de 12 meses fue 61% (junio de 1982 a junio de 1983). El menor rendimiento en un período de 12 meses fue -43% (marzo de 2008 a marzo de 2009). Las cuentas de ahorro en una institución financiera pueden pagar tan poco como el 0.25%, o incluso menos, pero tienen un riesgo mucho menor de pérdida del capital.

    Es importante recordar que éstos son casos hipotéticos y que las tasas futuras de rendimiento no se pueden predecir con certeza, y que las inversiones que pagan mayores tasas de rendimiento generalmente están sujetas a mayor riesgo y volatilidad. La tasa real de rendimiento en las inversiones puede variar mucho a lo largo del tiempo, especialmente en inversiones a largo plazo. Esto incluye la potencial pérdida del capital de su inversión. No es posible invertir directamente en un índice, y la tasa compuesta de rendimiento que se menciona arriba no refleja cargos de ventas y otros gastos y honorarios que pueden cobrar los fondos de inversión y/o empresas de inversión.

    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 Deferred vs. Tax Free InvestmentInvestCompare.html
      Taxable vs. Tax Deferred InvestmentsInvestCompare2.html
     Investment Savings and DistributionsInvestmentDistribution.html
     Investment DistributionsInvestmentDistribution2.html
     Investment LoanInvestmentLoan.html
     Investment ReturnsInvestmentReturn.html
     Investment Goal CalculatorInvestmentVariables.html
     Internal Rate of Return (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 CalculatorsHome Rent vs. Buy CalculatorMortgageRentvsBuy.html
     Retirement Savings and PlanningHow Important is Social Security?NoSocial.html
     Pension Plan Retirement OptionsPensionOptions.html
     Traditional IRA CalculatorRegularIRA.html
     401(k) CalculatorRetire401k.html
     403(b) Savings CalculatorRetire403b.html
     457 Savings CalculatorRetire457.html
     72(t) Distribution ImpactRetire72Alt.html
     Beneficiary Required Minimum Distributions (RMD)RetireBeneficiary.html
     Required Minimum Distribution (RMD)RetireDistrib.html
     How long will my retirement savings last?RetirementDistribution.html
     Retirement Income CalculatorRetirementIncome.html
     Retirement Nestegg CalculatorRetirementNestegg.html
     Retirement Planner CalculatorRetirementPlan.html
     Retirement Pension Planner CalculatorRetirementPlan3.html
     Retirement Planner with Retirement Earnings CalculatorRetirementPlan4.html
     Retirement Shortfall CalculatorRetireShort.html
     Individual 401(k) Savings CalculatorRetireSolo401k.html
     401(k) Spend It or Save It CalculatorRollover401k.html
     Roth IRA CalculatorRothIRA.html
     Roth IRA Conversion CalculatorRothTransfer.html
     Roth vs. Traditional IRA CalculatorRothvsRegular.html
     Roth 401(k) vs. Traditional 401(k) CalculatorRothvsTraditional401k.html
     RMD & Stretch IRA CalculatorStretchIRA.html
     Savings CalculatorsCollege Savings CalculatorCollegeSavings.html
     Compare Savings Rates CalculatorCompareSavings.html
     Compounding and Your Return CalculatorCompoundInterest.html
     Compound Savings CalculatorCompoundSavings.html
     Savings Distribution CalculatorDistribSavings.html
     Emergency Savings CalculatorEmergency.html
     Lunch Savings CalculatorLunchSaver.html
     Cool Million CalculatorMillionaire.html
     Savings Goals CalculatorSavings.html
     Savings, Taxes, and Inflation CalculatorSavingsVariables.html
     Benefit of Spending Less CalculatorSpendLess.html
     Vice Savings CalculatorViceSaver.html
     Don't Delay Your Savings!WaitCost.html
    For Canadian Calculators the definition for Rate of Return has been updated to:

    Rate of return

    The actual rate of return is largely dependent on the type of investments you select. For example, the annual return of the S&P/TSX Composite Index for the 10 year period from December 31, 2009 through December 31, 2019 was 3.9% (source spindices.com). Over the same period the total annual return (including dividends) was 6.9% (source spindices.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are 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.

  5. The definition for Inflation and Expected Inflation Rate has been updated to include CPI data from 2019. The CPI for 2019 was estimated by the Minneapolis Federal Reserve as 1.8% (the annualized rate), this small difference from the existing long term average was not enough change the long term average of 2.9%. The new definition now reads:

    This is 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 2019 the CPI has a long-term average of 2.9% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2019, the last full year available, the CPI was 1.8% annually as reported by the Minneapolis Federal Reserve.

    For Spanish the definition now reads as:

    Es la tasa de inflación que usted prevé como promedio a largo plazo. Una medida común de inflación en Estados Unidos es el Índice de precios al consumidor (CPI por sus siglas en inglés). De 1925 a 2019 el CPI tiene un promedio a largo plazo del 2.9% anual. En los últimos 40 años el CPI más alto fue 13.5% en 1980. En el 2019, el último año completo disponible, el CPI fue 1.8% anual, según informa el Banco de la Reserva Federal - Minneapolis.

    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 Goal CalculatorInvestmentVariables.html
     Personal Economic Recovery CalculatorRecoverTime.html
     Inflationary MillionairesInflationMillionaire.html
     Inflation and Consumer Prices CalculatorInflationPrice.html
     Inflation - Historic Impact on InvestmentsInflationHistory.html
     Mortgage CalculatorsHome Rent vs. Buy CalculatorMortgageRentvsBuy.html
     Retirement Savings and PlanningHow Important is Social Security?NoSocial.html
     How long will my retirement savings last?RetirementDistribution.html
     Retirement Income CalculatorRetirementIncome.html
     Retirement Nestegg CalculatorRetirementNestegg.html
     Retirement Planner CalculatorRetirementPlan.html
     Retirement Pension Planner CalculatorRetirementPlan3.html
     Retirement Planner with Retirement Earnings CalculatorRetirementPlan4.html
     Retirement Shortfall CalculatorRetireShort.html
     Social Security Benefit CalculatorSocialSecurity.html
     Company Stock Distribution Analysis CalculatorStockRollover401k.html
     Savings CalculatorsCool Million CalculatorMillionaire.html
     Savings Goal CalculatorSavings.html
     Savings, Taxes, and Inflation CalculatorSavingsVariables.html

  6. Health Savings Accounts (HSA)

      Have been finalized for 2020. The limits and amounts were increased slightly from 2019 for all HSA calculations. All calculators were updated to indicate the new 2020 amounts. Income tax brackets and rates were updated to 2020. This includes the following:

      The table below shows the limits for HSA's in 2020.

      Health Savings Accounts (HSA) Contribution and Limits
       20202019Change
      HSA Contribution LimitSingle: $3,550
      Family: $7,100
      Single: $3,500
      Family: $7,000
      Single: $50+
      Family: $100+
      HSA catch-up contributions*$1,000$1,000No change, not indexed to inflation
      HDHP minimum deductibleSingle: $1,400
      Family: $2,800
      Single: $1,350
      Family: $2,700
      Single: $50+
      Family: $100+
      HDHP maximum out-of-pocket**Single: $6,900
      Family: $13,800
      Single: $6,750
      Family: $13,500
      Single: $150+
      Family: $300+
      *Catch-up contributions can be made anytime during the year in which the participant turns 55.
      **This includes deductible amount, co-payments and other non-premium payments.

      Please note, you are no longer eligible to make HSA contributions starting in the first month that you are eligible for and enrolled in Medicare Part A or B.

      For complete details on HSAs you may wish to visit the U.S. Treasury at US Treasury Health Savings Accounts

    This affects the following calculators:

  7. Self-Employment Tax Calculator (TaxSelfEmployment.html): Has been updated 2020 tax rules. This calculator is for 2020 tax calculations for taxes filed in April 2021. Minor changes have occurred to the definitions and the calculations, but there have been no additional input and output fields. (Note: the 2019 version of this calculator for 2019 taxes which are filed in April 2020 is available at this link 2019 Self-Employment Tax Calculator.)

  8. 1040EZ Tax Form (TaxEZ1040.html), Marginal and Effective Tax Rates (TaxMargin.html): Have been finalized for the 2019. Minor changes have occurred to the definitions and the calculations. (Note: the 2020 version of this calculator will be released 3/31/2020 which is for 2020 taxes which are filed in April 2021.)

  9. 1040 Tax Estimator (Tax1040.html): Has been updated for changes in 2019. This is the final version of the 1040 tax form for 2019. Changes were made to match the new law: 2017 Tax Cuts and Jobs Act. This version includes an entry for Qualified Business Income Deduction.(Note: the 2020 version of this calculator will be released 3/31/2020 which is for 2020 taxes which are filed in April 2021.)

    Qualified business income deduction (Form 8995)

    The Qualified business income deduction (QBID) reduces your taxable income by 20% of your qualified business income, subject to certain limitations. Calculating your QBID is not included in this calculator but you can estimate the amount with the following Total the QBI for all of your pass-through entities. This will be reported on your Schedule K-1 or Schedule C for a sole proprietorship.

    Income Thresholds QBID 2019
     Single and Heads of HouseholdMarried Filing Jointly
    AGI at or below$160,700

    20% of business income from qualified trades or businesses including Specified Service Trade or Business (SSTB)es
    $321,400

    20% of business income from qualified trade or business including specified services or businesses.
    AGI in range has prorated deduction$160,700-$210,700

    Phase-out of QBID deduction for Specified Service Trade or Business (SSTB). Phase-in of employee wage requirements for all other businesses.
    $321,400-$421,400

    Phase-out of QBID deduction for Specified Service Trade or Business (SSTB). Phase-in of employee wage requirements for all other businesses.
    AGI above$210,700

    No QBID deduction for Specified Service Trade or Business (SSTB). QBID limited to 50% of employee wages paid or 25% of employee wages paid plus 2.5% of invested capital.
    $421,400

    No QBID deduction for Specified Service Trade or Business (SSTB). QBID limited to 50% of employee wages paid or 25% of employee wages paid plus 2.5% of invested capital.

    Which entities are considered Specified Service Trade or Business (SSTB) is not clearly defined. The following are specifically identified as NOT a SSTB: real estate brokers, property managers, architecture, engineering and bankers. For all other businesses you are considered a SSTB if you are in the trade or business of performing services as an employee - or - if the business is a Specified Service Trade or Business (SSTB) as defined by Section 1202(e)(3)(A).

    Section 1202(e)(3)(A) includes any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees.

  10. Charitable Giving Tax Savings Calculator (CharitableTaxSavings.html): Has been updated for changes in 2019. New calculator includes the impact of itemized deductions and AMT. (Note: the 2020 version of this calculator will be released 3/31/2020 which is for 2020 taxes which are filed in April 2021.).

  11. Long Term Care Calculator, Long-Term Care Required Savings (LongtermCare.html, LongTermCareSavings.html): The estimated costs have been updated to reflect the cost of 2019 nursing home and home health care costs.

    Definition for long term care costs has been updated to:

      This is your current estimated cost of long term care. This is your current estimated cost of long term care. According to the Genworth Financial 2019 Cost of Care Survey, the estimated median annual cost for a nursing home stay was $90,156 per year for a semi-private room. This is about $247 per day. The cost for a private room was $102,204 or $280 per day. Assisted living at home can cost more than $52,620 per year or $144 per day for a home healthcare aid. All of these long-term care costs can be considerably higher in larger metropolitan areas.

      The default daily value was increased to $280.

  12. Individual 401(k) Contribution Comparison (Individual401kContribution.html): Has been updated for 2020. Contribution limits have increased to $57,000 per year. The catch-up amount increases from $6,000 to $6,500. Definitions and information have been updated to reflect the calculator is current for 2020.

  13. Individual 401(k) Savings Calculator (RetireSolo401k.html): Has been updated for 2020, 401(k) contributions increased $500 to $19,500 and total defined benefit contribution limit has increased to $57,000. The catch-up amount also increases from $6,000 to $6,500 for solo 401(k) plans. Definitions and information have been updated to reflect the calculator is current for 2020.

  14. Retirement Contribution Effects on Your Paycheck Calculator (RetirePayrollSavings.html, Spanish: SPRetirementPayrollSavings.html, RetirementPayrollSavings2.html): The contribution limits for retirement plans on this calculator have been updated to $19,500 for 2020. The Payroll withholding information has also been updated to 2020 rules and rates.

  15. Payroll and withholding calculators

    The Payroll withholding information has been updated to 2020 rules and rates. Starting in 2020, empoyees have a new W-4 form. Completion of this form is optional. Integration of the new W-4 will be included in the 3/31/2020 update.

    This affects the following calculators:

    1. 401(k)/403(b) limits are $19,500 under 50, $26,000 for 50 and over
    2. Social Security tax (2020 earned income maximum of $137,700 with employee rate 6.2%).
    3. FICA maximum $8537.40 for 2019
    4. Allowances amouny is $4300 in 2020
    5. Additional Medicare Tax withholdings of 0.9% for earned income above $200,000. No change for 2020
    6. Flexible Spending Account for Medical maximum is increased to $2750 for 2020 (up $50)

    Definition updates as follows:

    Year-to-date earnings

    Your current year gross earnings that were subject to FICA taxes (Social Security tax and Medicare tax). This total should not include the current payroll period or any income from other sources or employers. We use this amount to determine if you are required to have Social Security tax or additional Medicare tax withheld for the current payroll period. Typically, this is your gross earnings minus employer paid health insurance and any Flexible Spending Account (FSA) contributions. In 2020, year-to-date earnings is not required or used for incomes under $137,700 per year, or if your current year-to-date earnings plus your current payroll does not exceed $137,700.

    Social Security tax

    For 2020, Social Security tax is calculated as your gross earnings times 6.2%. For 2020, incomes over $137,700 that have already had the maximum Social Security tax of $8537.40 withheld will not have additional withholding. Please note that if you have other wages or employers this calculator does not make any assumptions as to the total Social Security tax withheld for the current year other than the actual inputs for this calculator. This tax is also referred to as the Federal Insurance Contributions Act Old Age Survivors and Disability Insurance (FICA OASDI).

    Medicare tax

    Medicare tax is calculated as your gross earnings times 1.45%. Unlike the Social Security tax, there is no annual limit to the Medicare tax. Starting in 2013, an additional Medicare tax of 0.9% is withheld on all gross earnings paid in excess of $200,000 in a calendar year. If you enter an amount for the year-to-date gross earnings, this additional Medicare tax will be calculated based on the current period's gross earnings that exceed the annual $200,000 threshold. If no year-to-date amount is entered, any additional Medicare tax withholding will be calculated only for any gross earnings in excess of $200,000 for the current payroll period. If year-to-date wages prior to the current payroll period have exceeded $200,000, the year-to-date wages must be entered to calculate an accurate additional Medicare tax.

    Federal tax withholding calculations

    Federal income tax withholding is calculated by:

    1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
    2. Subtracting the value of Withholding Allowances claimed (for 2020, this is $4,300 multiplied by Withholding Allowances claimed on the employee's W-4: Employee's Withholding Allowance Certificate).
    3. Determining your annual tax by using the tables below (single and married rates, respectively).
    4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of Federal tax withholding to be deducted per pay period.
    Single Withholding Rates 2020*
    Annual taxable income between these amountsAnnual withholdingWithhold additional % of income over this amount
    *Source: https://www.irs.gov Publication 15 Income Tax Withholding Tables for 2020
    $0 - $3,800$0.00 
    $3,800 - $13,675$0.00plus 10% of income over $3,800
    $13,675 - $43,925$987.50plus 12% of income over $13,675
    $43,925 - $89,325$4,617.50plus 22% of income over $43,925
    $89,325 - $167,100$14,605.50plus 24% of income over $89,325
    $167,100 - $211,150$33,271.50plus 32% of income over $167,100
    $211,150 - $522,200$47,367.50plus 35% of income over $211,150
    $522,200 - (no limit)$156,235.00plus 37% of income over $522,200
    Married Withholding Rates 2020*
    Annual taxable income between these amountsAnnual withholdingWithhold additional % of income over this amount
    *Source: https://www.irs.gov Publication 15 Income Tax Withholding Tables for 2020
    $0 - $11,900$0.00 
    $11,900 - $31,650$0.00plus 10% of income over $11,900
    $31,650 - $92,150$1,975.00plus 12% of income over $31,650
    $92,150 - $182,950$9,235.00plus 22% of income over $92,150
    $182,950 - $338,500$29,211.00plus 24% of income over $182,950
    $338,500 - $426,600$66,543.00plus 32% of income over $338,500
    $426,600 - $633,950$94,735.00plus 35% of income over $426,600
    $633,950 - (no limit)$167,307.50plus 37% of income over $633,950

  16. College Savings (CollegeSavings.html, SPCollegeSavings.html (Spanish): The definition for tuition, room and board, and education cost inflation have been updated to include the average costs for the 2019-20 school year. The defaults have also been changed to reflect the new average cost for the 2019-20 school year and the average cost increases for tuition and room and board. The new information is show below: College cost
    The average published costs of college for the 2019-20 school year (including tuition, room and board, books, supplies, transportation and other personal expenses) as reported by the College Board:

    U.S. Undergraduate College Costs for 2019-20 School Year
    Source: College Board's 2019 Trends in College Pricing, www.collegeboard.com
    College Type Tuition & FeesRoom & BoardTotalChange from 2018-19
    Public 4-Year (in-state tuition)$10,440$11,510$21,9502.7%
    Public 4-Year (out-state tuition)$26,820$11,510$38,3302.4%
    Private 4-Year$36,880$12,990$49,8702.8%
    College cost inflation
    This is the percentage that you expect educational costs to increase per year. Data provided by The College Board's "Trends in College Pricing 2019" reported tuition, room and board increases at approximately 4.8% annually over the past 10 years. 2019 saw a smaller increase of approximately 2.8%.

  17. 401(k) Calculator (Retire401k.html), 401(k) Savings With Profit Sharing (Retire401kProfitShare.html): The definitions and the calculation module have been updated to reflect the 2020 maximum contribution limits of $19,500 annually ($500 change from 2019) for those under 50 and $26,000 annually for those 50 and older ($1000 change from 2019). The limitation used in the definition of highly compensated employee increased to $130,000 for 2020.

  18. 457 Savings Calculator (Retire457.html): The definitions and the calculation module have been updated to reflect 2020 maximum contribution limits of $19,500 annually for those under 50 and $26,000 annually for those 50 and older.

  19. 403(b) SavingsCalculator (Retire403b.html): The definitions and the calculation module have been updated to reflect 2020 maximum contribution limits of $19,500 annually for those under 50 and $26,000 annually for those 50 and older.

  20. Roth (after-tax) Account or Pre-Tax Account? (RothvsPreTaxAccount.html): The definitions and the calculation module have been updated to reflect 2020 maximum contribution limits of $19,500 annually for those under 50 and $26,000 annually for those 50 and older.

  21. 72(t) Calculator (Retire72T.html), 72(t) Distributions Impact (Retire72TAlt.html): The Federal Mid-Term rate has been updated for January 2020. This change affects the calculators default values and the definition of Reasonable Interest Rate For January 2020. For January 2020, 120% of the Federal Mid-Term rate is 2.03%.

  22. Roth IRA Calculator (RothIRA.html), Traditional IRA Calculator (RegularIRA.html), Roth IRA vs. Traditional IRA Calculator (RothvsRegular.html): These calculators have been updated to 2020 phase out ranges. The maximum annual contribution of $6,000 per individual under 50 and $7,000 per individual over 50 remains unchanged from 2020. These changes include updates to the calculation module as well as the definitions and the report.

    The tables and text below has been updated:

    2020 Traditional IRA Deduction Phase-Out Ranges
    Tax Filing StatusIncome Phase-Out Range
    Married filing jointly$104,000 - $124,000
    Single, Head of Household or Married Filing Separately (and have not lived with spouse for last year)*$65,000 - $75,000
    Married filing separately*$0 - $10,000
    Married filing jointly (spouse has employer plan, IRA owner does not)**$196,000 - $206,000

    Roth IRA contributions are limited for higher incomes. 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.

    Roth IRA 2020 Contribution Phaseout
    Tax Filing StatusIncome Phase-Out Range
    Married filing jointly or head of household$196,000 to $206,000
    Single$124,000 - $139,000
    Married filing separately$0 - $10,000

  23. Roth 401(k) vs. Traditional 401(k) Calculator (RothvsTraditional401k.html), Roth vs. Traditional 401(k) and your Paycheck (Compare401k2.html): Contribution limit notes updated for 2019. The definitions and the calculation module have been updated to reflect the 2020 maximum contribution limits of $19,500 annually for those under 50 and $26,000 annually for those 50 and older.

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

  25. 2020 Federal Tax Rate table has been added to the following calculators (replacing the 2019 Federal Tax Table)
    Filing Status and Federal Income Tax Rates 2020*
    Tax RateMarried Filing Jointly or Qualified Widow(er)SingleHead of HouseholdMarried Filing Separately
    *Caution: Do not use these tax rate schedules to figure 2019 taxes. Use only to figure 2020 estimates. Source: Rev. Proc. 2019-44
    10%$0 - $19,750$0 - $9,875$0 - $14,100$0 - $9,875
    12%$19,750 - $80,250$9,875 - $40,125$14,100 - $53,700$9,875 - $40,125
    22%$80,250 - $171,050$40,125 - $85,525$53,700 - $85,500$40,125 - $85,525
    24%$171,050 - $326,600$85,525 - $163,300$85,500 - $163,300$85,525 - $163,300
    32%$326,600 - $414,700$163,300 - $207,350$163,300 - $207,350$163,300 - $207,350
    35%$414,700 - $622,050$207,350 - $518,400$207,350 - $518,400$207,350 - $311,025
    37%Over  $622,050Over  $518,400Over  $518,400Over  $311,025

    NOTE: The actual tax calculators will be updated at the end of the tax season, in the 3/31/2020 update.

  26. Social Security Calculations

    Calculations and definitions updated for 2020. The calculations use the 2020 FICA income limit of $137,700 with an annual maximum Social Security benefit of $36,132 ($3,011 per month) for a single person and 1.5 times this amount for a married couple. Please see https://www.ssa.gov/news/press/factsheets/colafacts2020.pdf for more information.

    These changes affect the following calculators:

    NameHTML File Changed
    Social Security Benefit CalculatorSocialSecurity.html
    How important is Social Security?NoSocial.html
    Retirement Planner CalculatorRetirementPlan.html
    Retirement Pension Planner CalculatorRetirementPlan3.html
    Retirement Nestegg CalculatorRetirementNestegg.html
    Retirement Income CalculatorRetirementNumber.html
    Retirement Planner with Retirement Earnings CalculatorRetirementPlan4.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 increase 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 2020 FICA income limit of $137,700 with an annual maximum Social Security benefit of $36,132 ($3,011 per month) 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). This calculator rounds your age of full Social Security benefits to the next highest full year. If your birthdate is between 1955 and 1959 your actual full retirement age for Social Security is 66 plus two months for each year after 1954. Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.

    For Spanish versions:

    El Seguro Social está basado en una escala móvil en base a sus ingresos, a cuánto tiempo trabaja y a qué edad se jubila. Los beneficios del Seguro Social aumentan automáticamente todos los años en base a los aumentos del Índice de Precios al Consumidor. El incluir a un cónyuge aumenta sus beneficios del Seguro Social en 1.5 veces el cálculo de su beneficio individual. Note que esta calculadora asume que sólo uno de los cónyuges trabaja. Los beneficios podrían ser diferentes si su cónyuge ha trabajado y ganado un beneficio que es más de la mitad de su beneficio. En el caso de un matrimonio en el que ambos cónyuges trabajan, podría tener que hacer el cálculo dos veces - una por cada cónyuge con su respectivo ingreso. Esta calculadora sólo provee un cálculo aproximado de sus beneficios.

    En las calculaciones se utiliza el límite de ingreso 2020 FICA (Ley de la Contribución Federal al Seguro Social) de $137,700 con un beneficio anual máximo del Seguro Social de $36,132 ($3,011 por mes) para una persona soltera, y esa cantidad multiplicada por 1.5 para un matrimonio. Para recibir el beneficio máximo, usted tendría que haber ganado el salario máximo FICA por casi toda su carrera. También tendría que comenzar a recibir beneficios a su plena edad de jubilación de 66 ó 67 años (dependiendo de su fecha de nacimiento). Esta calculadora redondea su plena edad de jubilación para recibir beneficios del Seguro Social al siguiente año completo. Si su fecha de nacimiento es entre 1955 y 1959, el Seguro Social considera que su plena edad de jubilación es 66 más dos meses por cada año después de 1954. Su beneficio real podría ser menor o mayor, dependiendo de su historial de trabajo y las reglas completas de compensación que usa el Seguro Social.

  27. Estate Tax Planning Calculator (EstatePlan.html, SPEstatePlan.html): The exemption amount has been increased to $11,580,000. This is $180,000 more 2019's $11,400,000. There was no change in the estate tax rate. The annual gift exclusion remained at $15,000.

  28. Inflation Calculators: Have been updated to include CPI information for 2019. The CPI for 2019 was 1.8.

    These changes affect the following calculators:

    CategoryNameHTML File Changed
    InvestmentInflationary MillionairesInflationMillionaire.html
     Inflation and Consumer Prices CalculatorInflationPrice.html
     Inflation - Historic Impact on InvestmentsInflationHistory.html

  29. Tax Free Savings Account (TFSA) Comparison (Canadian and French Canadian) (CATFSACompare.html,FRTFSACompare.html ): The definitions and description have been updated for 2020 with improved links to canada.ca. The maximum contribution is set at $6,000 per year (no change from 2019). The new definition reads:

    Tax Free Savings Account (TFSA)

    This is a flexible savings account that allows Canadians 18 and older to save for any purpose and withdrawals are tax free. The contribution limit for 2020 is $6,000, not including any catchup contributions for previous withdrawals or years where you didn't contribute the maximum. In recognition of the fact that people are likely to have multiple savings objectives at various stages of their lives - e.g. vacation, wedding, car, home or cottage - the full amount of withdrawals may be re-contributed to a TFSA starting the following year, to ensure that there is no loss in a person's total savings. For complete details of how a TFSA works please visit https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html.

  30. Retirement Planner Calculator (Canadian and French Canadian) (CARetirementPlan.html,FRRetirementPlan.html): The definitions and description have been updated for 2020 where available. The default OAS and CPP/QPP amount have been updated the latests quarterly amounts available at https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html and https://www.canada.ca/en/services/benefits/publicpensions/cpp/payment-amounts.html respectively. OAS $613.53 Maximum Monthly Payment (regardless of marital status Oct. to Dec. 2019), CPP/QPP $683.65 Average monthly new benefit amount for July 2019.

  31. Education Savings Calculator (Canadian and French Canadian) (CACollegeSavings.html,FRCollegeSavings.html ): The RESP Grant information has been updated to the latest available matching grant information (2019).

    Registered Education Savings Plan (RESP) 2019
    Income RangeAnnual Grant Calculated As
    $0 - $47,630*$0.40 for each $1 for the first $500.
    $0.20 for each $1 for the next $1,500.
    Maximum annual grant is $600.
    $47,630* - $95,259*$0.30 for each $1 for the first $500.
    $0.20 for each $1 until you reach the maximum grant.
    Maximum annual grant is $550.
    over $95,259*$0.20 for each $1 for the first $2,500.
    Maximum annual grant is $500.

    In addition, definitions for Education Cost Inflation and Rate of return have been adjusted to be more Canadian specific.

    Rate of return

    This is the annually compounded rate of return you expect from your investments. This will also be the rate used if you end up with a negative balance and need to borrow money to meet your goal. The actual rate of return is largely dependent on the type of investments you select. For example, the annual return of the S&P/TSX Composite Index for the 10 year period from December 31, 2009 through December 31, 2019 was 3.9% (source spindices.com). Over the same period the total annual return (including dividends) was 6.9% (source spindices.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are 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.

    Education cost inflation

    This is the percentage that you expect educational costs to increase per year. The annual education inflation is approximately 3.3% (source: Statistics Canada 2018 - 2019 Academic year).