What happens if tax laws change?

Personal information
YouSpouse
Current age
Yearly income
$$
Age at retirement
Monthly wages after retirement
$$
For how many years

Social Security benefits
Age you will claim Social Security benefits

Monthly benefits are
$$

Pension or defined-benefit plan
Monthly pension payment
$$
Years you will receive payments
No payments adjusted for inflation
First payment adjusted for inflation
Rest of payments adjusted for inflation
All payments adjusted for inflation

Your projections
Inflation on your expenses
%
Yearly rate of growth in income
%
Life expectancy
Your state + federal tax rate before retirement
%
Your state + federal tax rate after retirement
%


Your projected monthly living expenses at retirement
Years requiredMonthly expenses
Initial living expenses
$
Intermediate living expenses
$
Remainder of retirement
$

Your future, one-time investments
Amount investedRate of returnYears until you invest
Investment #1
$%
Investment #2
$%


Your monthly savings (taxable accounts)
Current balanceRate of returnMonthly investmentYears to start
Account #1
$%$
Account #2
$%$

Your monthly savings (tax-advantaged accounts)
Current balanceYour monthly* investmentEmployer's monthly* investmentCurrent return rate
401(k)
$$$%
Roth 401(k)
$$%
SEP
$$$%
SIMPLE
$$$%
Keogh
$$$%
Traditional IRA*
$$%
Roth IRA*
$$%
Other
$$%

Your spouse's monthly savings (tax-advantaged accounts)
Current balanceYour monthly* investmentEmployer's monthly* investmentCurrent return rate
401(k)
$$$%
Roth 401(k)
$$%
SEP
$$$%
SIMPLE
$$$%
Keogh
$$$%
Traditional IRA*
$$%
Roth IRA*
$$%

* For IRAs, please input a yearly, not monthly, contributed amount.
Catch-up provision for contributions to retirement plans: A provision of the The Economic Growth and Tax Relief Reconciliation Act of 2001 that authorizes higher yearly contribution limits to IRAs, 401(k) plans and other defined-contribution retirement plans for workers who are age 50 or older.
Roth IRA: A tax-advantaged retirement account that allows you to make an after-tax contribution of up to $5,500 for 2014, or up to $6,500 if you're age 50 or older. If you keep a Roth IRA for at least five years and are at least age 59-1/2 when you begin to withdraw from the account, the entire account may be distributed tax- and penalty-free.
Increased contributions to individual retirement accounts: The Economic Growth and Tax Relief Reconciliation Act of 2001 authorizes higher yearly contribution limits to IRAs, 401(k) plans and other defined-contribution retirement plans. For regular and Roth IRAs, the yearly limit is $5,500 in 2014. A catch-up provision of the new law authorizes even higher limits for those who are age 50 or older. For these investors, the yearly combined limit is $6,500 in 2014. Employees participating in a 401(k) plan can now open a regular 401(k) or a Roth 401(k) within the plan account.
Taxable account: An account that does not receive the tax breaks that either a tax-exempt account or tax-deferred account are eligible to receive.
Rate of return: The percentage gain or loss on an investment expressed as a yearly rate.
Funds desired at death: Value of your investments, life insurance proceeds or estate that you wish to leave for your beneficiaries and heirs.
Tax-advantaged account: An investment account with tax-deferred or tax-exempt features that are used to save for retirement, college and other educational expenses.
401(k) plan: A 401(k) plan is a defined-contribution plan that permits employees to have a portion of their salary deducted from their paycheck and contributed to an account. Federal (and usually state) taxes on the employee contributions and investment earnings are deferred until the participant receives a distribution from the plan (typically at retirement). Employers may also contribute to the account of a participant. For 2014, you may contribute up to $17,500 to a 401(k) plan. If you are age 50 or older, you may contribute an additional $5,500, or a total of $23,000. If your employer makes contributions, the most that may be contributed to a 401(k) plan for 2014 is the lesser of $52,000 ($57,500 if age 50 or older) or 100% of your compensation.
Increased contributions to retirement plans: The Economic Growth and Tax Relief Reconciliation Act of 2001 authorizes higher yearly contribution limits to IRAs, 401(k) plans, and other defined-contribution retirement plans. For 401(k) plans, the yearly limit is $17,500 in 2014. A catch-up provision of the new law authorizes even higher limits for workers who are age 50 or older. For these employees, the yearly limit is $23,000 in 2014. Beginning in 2007, employees participating in a 401(k) plan may able to open a Roth 401(k) within the plan account. Employees can maintain a traditional 401(k) and Roth 401(k), but combined yearly contribution limits will be $17,500 ($23,000 for employees over 50).
Qualified Roth contribution programs: A tax-advantaged retirement account similar to a Roth IRA with one exception: there are no income limitations for those who want to participate.
Regular IRA: A regular IRA is also called a traditional IRA. It is a tax-deferred retirement account. For 2014, you are allowed to make a tax-deferred contribution of $5,500 to a regular IRA. This account grows tax-deferred until you begin to take distributions, which you may do after you turn age 59-1/2. For persons who are age 50 or older, a special catch-up provision of the 2001 tax law allows you to contribute an additional $1,000, or a total of $6,500. You are required to begin taking distributions from a regular IRA every year after reaching age 70-1/2 according to a schedule that is based on your age and the corresponding distribution period specified in the Life Expectancy Tables. (See Appendix C of IRS Pub. 590: Life Expectancy Tables.)
Inflation: A general increase in prices that you pay for goods and services, stated as a yearly rate.
Pension: An employer-sponsored retirement plan that pays retirees a fixed amount that is based on number of years of service and salary history.
Catch-up provision for contributions to individual retirement accounts: The Economic Growth and Tax Relief Reconciliation Act of 2001 authorized higher yearly contribution limits to IRAs, 401(k) plans and other defined-contribution retirement plans. A catch-up provision of the new law authorized even higher limits for workers who are age 50 or older. For regular and Roth IRAs, this additional contribution amount is $1,000 for 2014. As a result, combined yearly contribution limits for persons aged 50 or older increase to $6,500 for 2014.