The Tax Inflation rate is used to adjust a number of contribution limits and tax bracket thresholds, including:
Yearly contribution limits for retirement accounts (employer-sponsored plans and IRAs)
Ordinary income, capital gains, and medicare premium (IRMAA) tax bracket thresholds
Estate tax exemption thresholds (federal and state)
The default tax inflation rate is 2.5%. This setting can be found and adjusted at the global level in the ... More Menu > Assumptions > Inflation tab of your Advisor Portal:
This setting can also be adjusted at the client level, within the Gear Icon > Settings > Other Assumptions tab of a particular client plan. Changes made here will only impact the specific client household you are currently working on:
