Methodology & Assumptions

Why we publish this

Retirement decisions deserve transparent math. This page documents the tax tables, government data, and modeling assumptions used across all Plan My Retire tools, so you can verify our inputs and understand the limits of any projection. We review these values when the IRS and SSA publish annual updates (typically October–November) and after major legislation.

Tax data (tax year 2026)

• Federal income tax brackets: IRS Rev. Proc. 2025-32 (includes One Big Beautiful Bill Act changes). Seven brackets, 10%–37%, for Single, Married Filing Jointly, and Head of Household.
• Standard deduction: $16,100 Single / $32,200 MFJ / $24,150 HoH.
• Long-term capital gains thresholds: 0% bracket up to $49,450 (Single) / $98,900 (MFJ) of taxable income; 15% and 20% tiers per IRS 2026 tables.
• Social Security benefit taxation: combined-income thresholds of $25,000/$34,000 (Single) and $32,000/$44,000 (MFJ) — fixed by statute, not inflation-indexed.
• Future-year projections inflate brackets and deductions at an assumed 2.5%/year unless a tool states otherwise. Actual IRS adjustments will differ.

Retirement account rules (2026)

• RMDs: begin at age 73 (SECURE 2.0); age 75 for those born 1960 or later (from 2033). Factors from the current IRS Uniform Lifetime Table.
• Contribution limits: 401(k) $24,500 (+$8,000 catch-up 50+; $11,250 ages 60–63); total 415(c) limit $72,000; IRA $7,500 (+$1,100 catch-up); HSA $4,400 self / $8,750 family (+$1,000 at 55+). Source: IRS Notice 2025-67.
• Qualified Charitable Distributions: up to $111,000 per person (2026).

Social Security (2026)

• PIA bend points: $1,286 and $7,749 (90% / 32% / 15% formula), per SSA.
• Earnings test: $24,480 under FRA ($1 withheld per $2 above); $65,160 in the year FRA is reached ($1 per $3).
• Claiming adjustments: early reduction of 5/9 of 1% per month (first 36 months) and 5/12 of 1% beyond; delayed retirement credits of 8%/year to age 70.

Market & projection assumptions

• Default return and inflation assumptions are shown in each tool and can be adjusted by you. Long-run defaults: ~7% nominal equity returns, ~2.5–3% inflation, consistent with long-horizon historical averages — not predictions.
• Monte Carlo and historical-sequence simulators describe ranges of outcomes, not guarantees. Sequence-of-returns risk means actual results can differ materially from any average.
• Withdrawal-rate guidance references the Trinity study and subsequent research (e.g., Morningstar's annual withdrawal-rate work); see the linked articles for details.

Limitations

Our tools are educational models, not financial, tax, or legal advice. They simplify state taxes (most tools model federal only), IRMAA surcharges, AMT, NIIT, and unusual situations. Verify any decision with a qualified professional who can see your full picture. If you find a number you believe is stale or wrong, please contact us — we treat data accuracy as our highest priority.

Last reviewed: June 12, 2026.