The One Big Beautiful Bill Act was signed into law by President Trump on July 4, 2025.  The new legislation provides ample opportunities for tax payers and investors, which of course will vary depending upon an individual’s personal, financial planning and tax circumstances. 

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Impacting a large number of people is the extension of the Tax Cuts and Jobs Act of 2017 tax rates, which were otherwise scheduled to sunset at the end of 2025.  Conversations that we’ve been having with our clients depend upon their taxable income levels, regardless of whether they are earning income, retired, or somewhere in-between.  For clients with higher income, we now have the comfort of knowing that tax rates for the foreseeable future will stay the same, indexed for inflation.  This means that opportunities for Roth conversions can be considered into the future, if and when their taxable income may be lower than it is now.  High income earners may also wish to seek opportunities to smooth out their income over time.  Easy strategies can include maximizing deductible contributions to retirement accounts and/or H S A’s, if one is eligible.  Deferring the income tax through strategically timed withdrawals can take advantage of lower tax brackets in the future.  Conversions can also be timed to use all of the opportunity one has in future lower tax brackets over several years.  It is important to remember all of the contributors to taxable income, and it is always advised to check in with your tax professional.

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Many people breathed a sigh of planning relief when learning of the OBBBA’s permanent extension of income tax rates.