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TCJA sunset questions – How-to Forum – Pralana Retirement Calculator Forum
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TCJA sunset questions

 
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 Hugh Rodgers
(@mettleurgist)
New Member Customer
Joined: 5 years ago
Posts: 1
Topic starter June 30, 2021 9:46 am  

I was curious as to how PRC Gold handles the Tax Cuts & Jobs Act (TCJA) sunsetting in 2026.

How are the 2026 tax brackets computed? Are the 2017 tax brackets prior to TCJA law taken and inflation adjusted to 2026? If so, is the general inflation rate specified by the user the rate used for adjusting the tax brackets?

Same question for the personal exemptions and standard deduction - how are they computed for 2026? Is the entire 2017 tax law reinstated for 2026, e.g., are the Pease Limitations on itemized deductions for high earners reinstated?

If I set a different year that I expect the tax law to revert to Pre-TCJA of 2017 on the Home screen, is this new year used in the Roth Conversions/Optimization analysis?

Thank you.


   
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 Stuart Matthews
(@smatthews51)
Member Admin
Joined: 6 years ago
Posts: 618
June 30, 2021 9:53 am  

Hugh,

The answer to all your questions is YES: Pre-2017 tax law is reinstated with all tax numbers adjusted based on the specified general inflation rate.


   
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