The “One Big Beautiful Bill” is officially here, and there’s a lot in it that can affect your clients. Seriously, this is a massive piece of legislation, with the final version topping out over 1,000 pages. Instead of trying to sift through it all, we’re providing a closer look at the key elements you’ll need to know, how they can affect your clients and how to start planning.
Unless you want to read all of it. We don’t want to stand in the way of your happiness, but we do hope to save you some time.
7 Takeaways from the One Big Beautiful Bill for Financial Planners
TCJA Tax Brackets and Standard Deductions Made Permanent
The seven tax brackets and increased standard deduction from the 2017 Tax Cuts and Jobs Act (TCJA) were set to expire at the end of 2025. With The One Big Beautiful Bill, they’re not going anywhere, locking in lower tax rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) permanently across income levels. The higher TCJA standard deduction amounts will remain and adjust for inflation annually. Additionally, there is an increase to the 2025 standard deduction resulting from the OBBA. The post OBBBA 2025 standard deduction is:
- $15,750 for single filers
- $31,500 for joint filers
- $23,625 for heads of households
Financial planning pro tip: Higher standard deduction amounts mean the post-TCJA trend of fewer taxpayers itemizing will continue. Consider this as you project taxes year to year going forward. Strategies such as charitable contribution bundling should continue to be effective.
The SALT Cap Deduction
Next, the State and Local Tax (SALT) cap deduction jumps from $10,000 to $40,000 in 2025 for married couples and $20,000 for those filing single or married filing separately, providing some relief for clients living in high-tax states. The SALT cap rises 1% annually through 2029, but unless it’s extended, it reverts back to $10,000 in 2030.
While clients in high-income states are likely to benefit the most, the One Big Beautiful Bill does begin phasing out the deduction cap for those with a $500,000 adjusted gross income.
Financial planning pro tip: It’s important to look at how to accelerate or defer income and deductions to maximize the SALT cap deduction.
Charitable Giving Enhancements
Charitable giving also gets a boost with enhanced incentives that could make philanthropy more beneficial to your clients of all income levels. New provisions in the One Big Beautiful Bill include:
- Above-the-line deduction increase: $2,000 for joint filers, $1,000 for others
- Permanent 60% AGI limit for cash donations
- New floors: Only contributions exceeding 0.5% of AGI (individuals) or 1% of taxable income (corporations) are deductible.
Financial planning pro tip: Bunching strategies and donor-advised funds (DAFs) can maximize charitable deductions by targeting funding in years where itemizing is projected.
Enhanced Deductions for Senior Citizens
Another temporary measure in The One Big Beautiful Bill benefits your older clients. Between 2025 and 2028, Americans over the age of 65 can claim an extra $6,000 deduction if filing either single or $12,000 if married and filing jointly. This is on top of the standard deduction, providing a nice boost in tax savings.
Financial planning pro tip: Consider how this new deduction impacts potential income sources for seniors. A larger additional standard deduction further lowers taxable income which, in turn, may create tax gain harvesting opportunities at lower long-term capital gain rates.
Bigger (and Better) Estate Tax Exemptions
The One Big Beautiful Bill raises the estate and gift tax exemption to $15 million per person and will be indexed for inflation annually. For securities professionals and high-net-worth clients, the exemption is even higher—$25 million per individual and $50 million for couples. This change allows most estates to avoid federal taxation, allowing for more aggressive legacy planning.
Financial planning pro tip: Revisit trust structures, charitable giving strategies, and family business succession plans ot take full advantage of the expanded exemption.
Trump Accounts: A Financial Planning Tool for Families
The Trump Accounts offer an alternative vehicle for families to save for their children while also providing tax advantages without an upfront deduction, similar to an IRA. Within this provision, parents (or other adults) can contribute up to $5,000 annually to a qualified mutual fund before the child turns 18. Employers can also contribute up to $2,500 annually to their employees’ dependents, though this counts against the $5,000 limit.
Once a child turns 18, the account follows similar guidelines for IRAs, with withdrawals made before age 59½ subject to income tax and a 10% penalty, though there are exceptions, like education or buying a first house.
There is also an IRS pilot program between that provides a one-time $1,000 contribution to an account for children born as US citizens and issued Social Security numbers between 2025 and 2028.
Financial planning pro tip: Use this chart sourced from Tax Foundation to compare savings options to help your clients make the right choice.
| Savings Vehicle | Tax on Deposits? | Tax on Withdrawals? | Eligible Expenses | Conditions on Withdrawals |
| Traditional IRA/401(k) | No | Yes | All | Withdrawals made after 59½, with limited exceptions allowing earlier penalty-free withdrawal |
| Roth IRA/401(k) | Yes | No | All | Withdrawals made after 59½, with limited exceptions allowing earlier penalty-free withdrawal |
| 529 Tuition Plan | Yes | No | Qualifying Educational Expenses | Must be qualifying educational expenses |
| Health Savings Accounts (HSAs) | No | No | Qualifying Health Expenses | Must be qualifying health expenses |
| Trump Accounts | Yes | Yes, with many exemptions | All qualified IRA expenses | Withdrawals made after age 18, with tax preference for expenditures that fall under IRA early withdrawal exceptions and withdrawals after age 59½ |
| Universal Savings Accounts (traditional) | No | Yes | All | None |
| Universal Savings Accounts (Roth) | Yes | No | All | None |
QBI Deduction Is Also Sticking Around
The Qualified Business Income (QBI) Deduction allows owners of pass-through businesses to deduct up to 20% of their QBI, reducing their taxable income. Like the tax brackets and standard deduction, the QBI deduction (also called Section 199A) was also supposed to end after 2025, but the One Big Beautiful Bill makes this permanent, too, so your clients who own businesses may have reason to celebrate.
Financial planning pro tip: Remember, QBI doesn’t include investment income, income from businesses outside the United States, or interest income not allocated from a trade or business, and it doesn’t reduce self-employment tax.
Business Tax Relief
The QBI deduction isn’t the only provision designed to help small business owners. Other provisions within the One Big Beautiful Bill should also reduce the tax burden, including:
- 100% bonus depreciation: Businesses can write off the entire cost of qualifying assets upfront rather than over years.
- Immediate expensing of R&E costs: Expenses linked to research and experimentation (sometimes referred to as research and development) are eligible for expensing immediately, so innovation literally pays off.
- EBITDA-based interest limitation: Businesses can deduct more by shifting to EBITDA (earnings before interest, taxes, depreciation, and amortization) as the foundation for interest expense caps.
Financial planning pro tip: Help business clients adopt a forward-looking purchase strategy to maximize 100% depreciation properly and advise R&D-focused organizations to document expenses meticulously and explore claiming credits under the revised rules.
What Does the One Big Beautiful Bill Mean for Financial Planners
There are a lot of provisions in the One Big Beautiful Bill that can affect your clients, either positively or negatively. So, here are some next steps to help you stay on top of changes and do right by your clients.
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Sharpen your knowledge: This article provides a good foundation for what you need to know, but it’s important to dig a bit deeper into the tax code adjustments and reimbursement models.
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Keep your clients informed: As you advise your clients and provide solutions, make sure you’re walking them through what you’re doing and why. There is a lot of uncertainty around this bill, so providing clarity can help you build trust with your clients.
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Stay flexible: Regulations evolve and we’re still waiting on actual guidance from the IRS on many of these provisions. Advise clients accordingly with contingency-ready blueprints.
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