What’s changed?
The One Big Beautiful Bill introduces several major tax updates, including permanently lower federal tax brackets, a higher estate & gift exclusion, and expanded planning opportunities for families and retirees.
Key opportunities
- Permanently lower income tax brackets support long-term tax and Roth planning.
- Estate & gift exclusion increases to an inflation-adjusted $15M per person beginning in 2026.
- SALT deduction cap temporarily raised to $40,000 from 2025–2029.
- More flexible family benefits: expanded child tax credit, Starter IRA for kids, and enhanced 529 usage.
- Temporary deductions (2025–2028) for seniors, tipped workers, and overtime earners.
- Energy credits end after September 30, 2025
Roth conversion spotlight
With permanent lower tax brackets, Roth conversions may now be more tax-efficient. Strategies include bracket-filling, converting in low-income years, coordinating with charitable giving, and leveraging temporary deductions to offset conversion income.
Why this matters
Proactive planning can turn legislative changes into long-term savings. These provisions offer powerful opportunities for retirement, tax, and legacy planning.
Next steps
Talk with a Respective Wealth financial advisor to help explore which strategies align with your financial goals. Customized planning can help you make the most of today’s tax landscape
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