Tax Strategies

A notable change in the One Big Beautiful Bill Act (OBBBA) is the new enhanced senior deduction. For taxpayers age 65 and older, it provides an additional $6,000 deduction ($12,000 for married couples filing jointly where both spouses qualify). This extra deduction applies through 2028 and can be claimed whether you itemize or take the standard deduction.

For retirees, this opens up room to offset more taxable income without pushing into higher tax brackets. Some possible strategies include:

• Accelerating Roth IRA conversions while the larger deduction is in place.

• Harvesting capital gains to reset cost basis while minimizing tax impact.

• Shifting the timing of withdrawals from taxable, IRA, or Roth accounts to make use of the deduction window.

Question for you:
How are you planning to take advantage of this enhanced deduction? Will you use it for Roth conversions, realizing gains, or another strategy entirely?

👉 Read the full article here to understand all the OBBBA changes.

We'd love to hear how you're thinking about incorporating this provision into your retirement tax planning.

A notable change in the One Big Beautiful Bill Act (OBBBA) is the new enhanced senior deduction. For taxpayers age 65 and older, it provides an additional $6,000 deduction ($12,000 for married couples filing jointly where both spouses qualify). This extra deduction applies through 2028 and can be claimed whether you itemize or take the standard deduction.

For retirees, this opens up room to offset more taxable income without pushing into higher tax brackets. Some possible strategies include:

• Accelerating Roth IRA conversions while the larger deduction is in place.

• Harvesting capital gains to reset cost basis while minimizing tax impact.

• Shifting the timing of withdrawals from taxable, IRA, or Roth accounts to make use of the deduction window.

Question for you:
How are you planning to take advantage of this enhanced deduction? Will you use it for Roth conversions, realizing gains, or another strategy entirely?

👉 Read the full article here to understand all the OBBBA changes.

We'd love to hear how you're thinking about incorporating this provision into your retirement tax planning.

The following was sent to me as a private message, but I believe the author intended to post it here. 

Message From: James Blecker

You asked what OBBBA means for my taxes.  I have read everything I have seen on the OBBBA and find that it has no effect on my taxes from 2024 taxes.  The two talked about changes are the enhanced senior deduction and extended SALT limit to $40,000.   However with the phase outs, I do not qualify for either.  One concern is that with tax changes, I may again be hit with the AMT.  For 2025 the OBBBA means nothing for my taxes.  

A notable change in the One Big Beautiful Bill Act (OBBBA) is the new enhanced senior deduction. For taxpayers age 65 and older, it provides an additional $6,000 deduction ($12,000 for married couples filing jointly where both spouses qualify). This extra deduction applies through 2028 and can be claimed whether you itemize or take the standard deduction.

For retirees, this opens up room to offset more taxable income without pushing into higher tax brackets. Some possible strategies include:

• Accelerating Roth IRA conversions while the larger deduction is in place.

• Harvesting capital gains to reset cost basis while minimizing tax impact.

• Shifting the timing of withdrawals from taxable, IRA, or Roth accounts to make use of the deduction window.

Question for you:
How are you planning to take advantage of this enhanced deduction? Will you use it for Roth conversions, realizing gains, or another strategy entirely?

👉 Read the full article here to understand all the OBBBA changes.

We'd love to hear how you're thinking about incorporating this provision into your retirement tax planning.

Like James Blecker, the NEW deductions provided by the OBBBA won't benefit me much. However, I greatly appreciate the Act for extending the many tax provisions that were set to expire at the end of this year and for raising the estate tax exemption. 

The following was sent to me as a private message, but I believe the author intended to post it here. 

Message From: James Blecker

You asked what OBBBA means for my taxes.  I have read everything I have seen on the OBBBA and find that it has no effect on my taxes from 2024 taxes.  The two talked about changes are the enhanced senior deduction and extended SALT limit to $40,000.   However with the phase outs, I do not qualify for either.  One concern is that with tax changes, I may again be hit with the AMT.  For 2025 the OBBBA means nothing for my taxes.  

A notable change in the One Big Beautiful Bill Act (OBBBA) is the new enhanced senior deduction. For taxpayers age 65 and older, it provides an additional $6,000 deduction ($12,000 for married couples filing jointly where both spouses qualify). This extra deduction applies through 2028 and can be claimed whether you itemize or take the standard deduction.

For retirees, this opens up room to offset more taxable income without pushing into higher tax brackets. Some possible strategies include:

• Accelerating Roth IRA conversions while the larger deduction is in place.

• Harvesting capital gains to reset cost basis while minimizing tax impact.

• Shifting the timing of withdrawals from taxable, IRA, or Roth accounts to make use of the deduction window.

Question for you:
How are you planning to take advantage of this enhanced deduction? Will you use it for Roth conversions, realizing gains, or another strategy entirely?

👉 Read the full article here to understand all the OBBBA changes.

We'd love to hear how you're thinking about incorporating this provision into your retirement tax planning.