The One Big Beautiful Bill Act of 2025 is a major piece of legislation that could have a big impact on your financial future.
How Might the One Big Beautiful Bill Act of 2025 Impact Your Financial Plan?
First, the new tax law makes the 2017 tax cuts permanent. This means lower tax rates and higher standard deductions, which could provide immediate tax savings, especially if you’re in a higher tax bracket.
For estate planning, there’s a significant change. The estate and gift tax exemptions are increasing to $15 million for individuals and $30 million for married couples (beginning January 1,2026), allowing you to protect more of your wealth from estate taxes.
If you’re thinking about retirement, this new law opens up opportunities for Roth conversions. Converting traditional IRAs to Roth IRAs now can help reduce your future tax burden when it’s time to make withdrawals.
For families, there’s good news. The Child Tax Credit has increased to $2,200 per child, with a refundable portion of $1,400, providing more money to help with education or other family expenses.
Finally, 529 plans are expanding to cover more educational expenses, and new retirement savings options are available, making this a great time to revisit your financial plan and ensure you’re making the most of these changes.
Connect with a Financial Planner
With all these updates in the new tax law, it’s essential to understand how these changes may affect your financial planning strategies. At Trust Point, we have financial professionals available to guide you on your journey to financial success. Reach out to our team today at 800-658-9474 for a personalized consultation. Together, we’ll work to simplify and secure your wealth, reviewing that your financial future is on the right path under the new tax law.
