{"id":9931,"date":"2025-06-24T05:33:10","date_gmt":"2025-06-24T05:33:10","guid":{"rendered":"https:\/\/www.europesays.com\/us\/9931\/"},"modified":"2025-06-24T05:33:10","modified_gmt":"2025-06-24T05:33:10","slug":"4-ways-trumps-big-beautiful-bill-will-change-how-you-plan-for-retirement","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/9931\/","title":{"rendered":"4 Ways Trump\u2019s \u2018Big Beautiful Bill\u2019 Will Change How You Plan for Retirement"},"content":{"rendered":"\n

President Donald Trump\u2019s signature legislation, dubbed the \u201cOne Big Beautiful Bill,\u201d<\/a> includes plans for tax cuts, green energy cuts, Medicaid cuts and more. It also contains new retirement account provisions that could affect how Americans plan for their golden years.<\/p>\n

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As the landmark bill makes its way from the House to the Senate, here\u2019s a look at what you need to understand about how it can affect how you plan for retirement<\/a>.<\/p>\n

Many Americans would receive a break on their taxes owed if the bill is passed. This means they would be able to channel more money into retirement savings<\/a> accounts.<\/p>\n

\u201cRetirement planning fundamentally comes down to having sufficient resources to make work optional,\u201d said Brett Horowitz, principal and wealth manager at Evensky & Katz \/ Foldes Financial Wealth Management<\/a>. \u201cThe proposed extensions of the Tax Cuts & Jobs Act provisions, combined with new deductions for tip income, overtime pay and seniors over 65, could significantly improve retirement outcomes for Americans.\u201d<\/p>\n

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Those who benefited from the cuts in the original Tax Cuts & Jobs Act will continue to enjoy these cuts, allowing them to continue saving for retirement as they had been.<\/p>\n

\u201cWith many TCJA provisions set to expire at the end of 2025, the House Republican proposal to make these extensions permanent may provide the certainty we need for effective long-term planning,\u201d Horowitz said.<\/p>\n

\u201cRetirement modeling depends on clear inputs and stable variables,\u201d he continued. \u201cThe less uncertainty in tax policy, the more accurately we can project success rates. When these changes take effect \u2014 pending Senate approval \u2014 we\u2019ll be able to deliver much better news to clients about their retirement timeline.\u201d<\/p>\n

Horowitz believes if Trump\u2019s \u201cOne Big Beautiful Bill\u201d does not ultimately pass, it could negatively affect Americans\u2019 abilities to save for retirement.<\/p>\n

\u201cThere\u2019s a profound psychological difference between telling someone they can retire earlier than expected versus having to extend their working years<\/a>,\u201d he said. \u201cThe former energizes people about their financial future; the latter can feel overwhelming. These tax provisions create the conditions where more Americans can realistically achieve comfortable retirement.\u201d<\/p>\n

Learn More: Trump Wants To Eliminate Social Security Taxes: Here\u2019s How Much the Average Retiree Would Save<\/a><\/strong><\/p>\n

Savvy long-term investment strategies should take taxes into account, so changes to tax laws<\/a> can shift these strategies.<\/p>\n

Story Continues <\/p>\n

\u201cSmart investing isn\u2019t actually about chasing the highest gross returns \u2014 it\u2019s about maximizing what clients actually keep after taxes and expenses, and this tax bill addresses some issues there,\u201d Horowitz said. \u201cWhile we can control costs through low-fee funds, tax efficiency requires a more nuanced approach that varies by everyone\u2019s personal circumstances.<\/p>\n

\u201cHigher tax rates push us toward tax-free municipal bonds and tax-efficient ETFs in taxable accounts, while we place tax-inefficient investments in retirement accounts,\u201d he continued. \u201cThis \u2018tax location\u2019 strategy can significantly impact net returns, even if it means accounts perform differently.\u201d<\/p>\n

\u201cTwo provisions in the Tax Cuts & Jobs Act have created the most anxiety for our clients \u2014 the SALT deduction cap and estate tax exemptions,\u201d Horowitz said. \u201cBoth are getting significant relief under the current proposal.\u201d<\/p>\n

The proposed increase in the SALT deduction cap means retirees will face less of a penalty if they choose to spend their golden years in a state with higher income taxes.<\/p>\n

\u201cThe SALT deduction increase from $10,000 to $40,000 will reshape where people choose to live and retire,\u201d Horowitz said. \u201cWe\u2019ve already seen migration patterns shift dramatically since 2017, with high-tax states losing residents to states like Florida and Texas. This change reduces the penalty for living in high-income-tax states, though it doesn\u2019t eliminate the advantage of no-tax states<\/a> entirely.\u201d<\/p>\n

Estate planning strategies would also change for many Americans if the bill were to pass.<\/p>\n

\u201cOn the estate side, the current $13.99 million exemption was set to drop to $7.14 million in 2026 \u2014 a reduction that had wealthy clients scrambling to implement complex gifting strategies and trust structures,\u201d Horowitz said. \u201cThe proposed permanent increase to $15 million per person, or $30 million for couples, provides enormous relief for families in that middle tier.\u201d<\/p>\n

This is particularly important because of state-level complications, Horowitz continued.<\/p>\n

\u201cTake New York, where you could face no federal estate tax, but still owe state estate taxes on estates between $7.16 million and $13.99 million,\u201d he said. \u201cThe interplay between federal and state rules makes domicile planning critical.\u201d<\/p>\n

The \u201cOne Big Beautiful Bill\u201d should make estate planning<\/a> less complex for many people.<\/p>\n

\u201cFor clients who\u2019ve already implemented sophisticated estate planning strategies, those structures remain valuable,\u201d Horowitz said. \u201cBut for families with estates under the new thresholds, this eliminates the pressure to make rushed gifting decisions or create complex trusts simply to avoid tax cliffs.\u201d<\/p>\n

Overall, Horowitz believes the bill will make retirement planning easier.<\/p>\n

\u201cThe permanent nature of these changes \u2014 assuming they pass \u2014 finally gives families the certainty to make long-term decisions about where to live, how to structure their wealth and when to implement estate planning strategies,\u201d he said.<\/p>\n

Editor\u2019s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com<\/a>.<\/p>\n

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This article originally appeared on GOBankingRates.com<\/a>: 4 Ways Trump\u2019s \u2018Big Beautiful Bill\u2019 Will Change How You Plan for Retirement<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"President Donald Trump\u2019s signature legislation, dubbed the \u201cOne Big Beautiful Bill,\u201d includes plans for tax cuts, green energy…\n","protected":false},"author":3,"featured_media":9932,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[10980,10976,64,10979,10978,255,5005,10975,708,696,10977,67,132,68],"class_list":{"0":"post-9931","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-anna-wilding","9":"tag-brett-horowitz","10":"tag-business","11":"tag-estate-tax","12":"tag-horowitz","13":"tag-personal-finance","14":"tag-president-donald-trump","15":"tag-retirement-account","16":"tag-retirement-planning","17":"tag-retirement-savings","18":"tag-tax-cuts","19":"tag-united-states","20":"tag-unitedstates","21":"tag-us"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/9931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=9931"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/9931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/9932"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=9931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=9931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=9931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}