Big Beautiful Bill – The Beautiful Thing about Being a Senior

With the extension of the 2018 Tax Cuts and Job Act tax cuts, along with an increase of $6,000 standard deduction for seniors, the Big Beautiful Bill offers retirees the opportunity over the next three years (through 2028) to be more savvy when it comes to staying in the lower tax brackets.

Big Beautiful Bill - opportunity for retirees

• The extension of the current federal tax rate maintains some of the lowest rates in history.

• However, without proper planning, taxes can become one of your largest expenses in retirement.

• While the high standard deduction and other provisions are unlikely to be permanent, seniors will have a unique opportunity in the short term.

• More opportunity to utilize tax-efficient strategies, such as Qualified Charitable Distributions, efficient withdrawals, and Roth conversions.

  
  

What this means for you

Critical questions we work through with our retired or about-to-retire clients are not only where the “retirement paycheck” money is going to come from, but also how to make those income streams as tax-efficient as possible.

• The expanded $6,000 standard deduction helps lower the overall amount you pay to the IRS, decreasing the chance of getting pushed into a higher tax bracket.

• We analyze the timing of filing for Social Security, which affects your benefits, and explore the use of tax strategies to become tax savvy.

• We discuss the best places to distribute money to manage the income gap before filing for Social Security.

Our overall goal is to help our clients pay lower taxes throughout their lifetime, not just in a single year.

While these are only a few things we do, please bear in mind that this is general guidance that doesn’t apply to any one person and is intended to be used for illustrative purposes only, not tax or investment advice. If you’d like to discuss how this pertains to your tax or retirement planning, please set up a time to meet.

Stay Focused!

-Charlie