What the “One Big Beautiful Bill” Could Mean for Your Financial Plan

On July 4, 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act (OBBBA)—a sweeping piece of tax legislation that permanently extends many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) while introducing several new tax rules. If you’re planning for retirement or working to optimize your financial strategy, it’s worth understanding how this bill could affect your income, investments, and estate planning going forward.

While the bill touches nearly every corner of the tax code—from charitable deductions to business incentives—it’s especially relevant to individuals, families, and business owners who want to position themselves well in a changing economic landscape.

Let’s break down the key provisions and explore what they may mean for your financial future.

Income Tax Updates: More Permanence, Some New Perks

One significant change made is the permanent extension of the TCJA tax brackets (10% through 37%) and the increased standard deduction—$15,750 for individuals and $31,500 for joint filers, indexed for inflation. These changes aim to preserve the simplified filing structure introduced in 2017.

Seniors will also see a “bonus” deduction of up to $6,000, offering potential tax relief for those aged 65 and older. However, personal exemptions remain permanently eliminated.

Estate and Gift Tax Expansion

The OBBBA increases the estate and lifetime gift tax exemption to $15 million for individuals and $30 million for couples beginning in 2026. This could offer new opportunities for wealth transfer strategies, especially for high-net-worth families aiming to minimize estate tax liability.

Business Incentives and Investment-Friendly Measures

Business owners benefit from the permanent Qualified Business Income (QBI) deduction, a reinstated 100% bonus depreciation, and increased spending limits for small businesses. Additionally, a minimum $400 deduction is available to anyone earning $1,000 or more in an active business.

For investors, the bill offers key changes to:

• Qualified Opportunity Zones (QOZs): Reduced capital gains tax incentives, but new zones beginning in 2027
  
• 529 and ABLE accounts: More flexible use and extended contribution options
  
• New “Trump Accounts”: Tax-advantaged savings vehicles for children born between 2024–2029, with a $1,000 government contribution and IRA-like features at age 18

Read more about these major changes by, downloading the full summary sheet.

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Advisory services are offered through SPGA under the brand SPG. This material is for informational and educational purposes only and should not be interpreted as a solicitation or recommendation to engage in any investment strategy. 

None of the content herein is intended to provide specific retirement planning, investment, real estate, insurance, legal, tax, accounting, or financial advice. It is also not intended to replace the guidance of qualified professionals. Investing involves risk, including the possible loss of principal. No investment strategy can guarantee a profit or eliminate the risk of loss.

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Information presented is based on sources believed to be reliable, including the Social Security Administration and various service providers, tools, and other sources. Some of the information changes periodically and may not always reflect the most current updates. While we strive for accuracy, we make no warranty as to the accuracy, completeness, reliability, currency, or error-free nature of the information provided. 

The material does not necessarily reflect the views or official position of SPGA. SPGA assumes no responsibility for any losses arising from reliance on the information presented. Investors should carefully consider their own investment objectives. Consult with a tax specialist for non-financial retirement planning, estate and/or legal professional prior to making any financial decisions for your personal situation.