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You have probably heard by now that the “One Big Beautiful Bill” has been approved by the House and Senate and was signed by President Trump over the weekend. While the media attention has been largely focused on politics, there are some significant implications for financial planning as well. I have pulled out what I think are five of the most important components and how they could impact you.

 

1. Standard Deduction Increases for people age 65 and older

  • A married couple over 65 may now deduct up to $45,200 per year, which may open up financial planning opportunities.¹
  • This benefit phases out between $150k–$250k of income, so planning ahead for withdrawals and Roth conversions is more important than ever.²
  • These changes are temporary through 2028, so there’s a limited window to act.³

2. The 30% Solar tax credit for homeowners ends after December 31st 2025

  • If you are considering solar panels or battery storage, make sure you do that before the end of the year, because residential solar credits go away entirely after 2025.⁴

3. Increased deductions for overtime and tips

  • The new bill allows for deductions of $25,000 of tips and $12,500 in overtime pay (subject to income phaseouts).⁵

4. The 2017 income-tax cuts are extended, creating opportunities for Roth conversions

  • Tax rates were scheduled to go up in 2026, but the 2017 cuts are now extended into perpetuity.⁶
  • This extends the window to do Roth conversions at today’s relatively low rates.

5. Health Insurance Premiums May increase in 2027 — especially for early retirees and self-employed individuals

  • The 8.5% income cap on ACA premiums will expire, and the 400% income limit for subsidies will return.⁷
  • This affects early retirees, part-time workers, and the self-employed, who may see their premiums increase.
  • There’s still time to explore pre-Medicare coverage strategies, so let’s start to plan early.

 

As you can see, these changes span tax policy, healthcare, and retirement planning — and many of them are time-sensitive. Whether you’re thinking about Roth conversion for 2025, assessing healthcare costs in retirement, or evaluating a home solar investment, it’s a good idea to reassess your financial plan in light of this legislation.

As they always do, these policy changes could have a real impact on your financial situation. If you have questions about how these updates affect you, or want to explore strategies to take advantage of the opportunities in the bill, let’s schedule a time to talk.

References:

1. Axios, “What the One Big Beautiful Bill Means for Seniors,” July 5, 2025

2. Wall Street Journal, “Tax Planning Under the New GOP Bill,” July 5, 2025

3. Reuters, “Trump Signs Major Tax Bill Into Law,” July 4, 2025

4. U.S. Department of Energy, Residential Clean Energy Credit Guidance, July 2025

5. Kiplinger, “What’s Happening With Taxes on Overtime Pay?” July 6, 2025

6. Wall Street Journal, “Trump’s 2017 Tax Cuts Now Permanent Under New Law,” July 5, 2025

7. Axios, “Health Insurance Subsidy Changes in the New Law,” July 6, 2025