PFR Nation,

It’s official, the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025, making significant impacts on tax rates, deductions, and various credits.

This by no means is a summary of ALL the changes from OBBBA, but I attempted to summarize what I believed was most relevant to our listeners and clients (folks nearing or in retirement, saved over $1million, excluding primary residence, mostly in tax-deferred vehicles).

In addition to the key tax changes, I’ll also break down 3 client examples and how OBBBA impacted their taxes in 2025. Finally, I will discuss 7 planning opportunities to consider.

I hope you find it helpful.

If you are interested in learning more about working with our firm, you can visit our website or fill out the Retirement Readiness Questionnaire below.

-Kevin

Takeaways:

The OBBBA has made current tax rates permanent, preventing increases in 2026.
Standard deductions have been slightly increased and made permanent.
Bonus deductions for taxpayers over 65.
Social security income remains taxable, despite misconceptions about tax-free status.
Child tax credits have been permanently increased to $2,200 per child.
Business owners benefited with QBI deduction and 100% bonus depreciation.
The SALT deduction cap has been raised to $40,000, benefiting high-tax state residents.
Service workers can now deduct tips up to $25,000, making their income more tax-efficient.
The estate and gift tax exemptions have been permanently increased to $15 million for individuals and $30 million for couples.
The AMT exemption has been extended, but phase-out rules have reverted to previous levels.
Planning opportunities exist for those over 65 to maximize deductions and manage tax liabilities.

⁠⁠Are you interested in working with me 1 on 1?⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Click this link to fill out our Retirement Readiness Questionnaire⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Or,⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ visit my website⁠⁠⁠⁠⁠⁠⁠⁠⁠

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This is for general education purposes only and should not be considered as tax, legal or investment advice.

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