Ways the One Big Beautiful Bill Act (OBBBA) Impacts Retirement, Taxes and Estate Planning
By Luke Sullivan on October 9, 2025
Check out the latest insights on the One Big Beautiful Bill Act (OBBBA) and its impact on retirement planning, taxes, estate strategies, and market trends. Presented by Falcon Wealth Advisors, this educational recorded live event covers key provisions of OBBBA, including tax bracket changes, new deductions for seniors, Trump Accounts for children, estate planning updates, charitable giving opportunities, and industry implications.
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In our recent event, “One Big Beautiful Retirement”, hosted by Falcon Wealth Advisors, provided a comprehensive overview of the “One Big Beautiful Bill Act” (OBBBA) and its sweeping implications for retirees, pre-retirees, and families planning for the future. With over 870 pages of legislation, the bill introduces significant changes to tax policy, retirement planning, healthcare, estate planning, and investment strategy. Here’s what you should to know, with insights and quotes from Jake Falcon and Cory Bittner.
Tax Bracket Changes and Deductions
One of the most impactful elements of the OBBBA is the permanence of current tax brackets. As Jake explained, “The tax brackets were set to expire at the end of this year, meaning for most of us, all of our taxes were going to go up in 2026. Well now, those have become permanent.” This stability allows for more confident long-term financial planning. The standard deduction has also been made permanent and indexed for inflation, providing continued relief for most taxpayers. “They have also made permanent the standard deductions, so they’re quite a bit higher for most of us, so a lot of you can’t itemize, but that’s okay because you’re getting that full standard deduction,” Jake noted.
The Alternative Minimum Tax (AMT) phaseouts remain high, and the bill introduces more opportunities for deductions. Importantly, Jake emphasized the need for ongoing tax planning: “We can’t just tell you one year what you should do for the next 20 years. It literally needs to be discussed with our planning group every single year.”
Senior Bonus Deduction
A notable new benefit for seniors is the “Senior Bonus Deduction.” As outlined in the presentation, individuals aged 65 and older can claim an additional $6,000 deduction ($12,000 for couples), even if they itemize. However, this deduction phases out for incomes above $75,000 (single) or $150,000 (married) and expires after 2028. Jake explained, “If we can keep your adjusted gross, your modified adjusted gross income below these thresholds, you may be eligible for this. Now some of our clients are way over it and so it doesn’t apply to them, which is okay, but it’s just a nice little perk to be aware of and to know about starting this year.”
Introducing Trump Accounts
One of the most innovative features of the OBBBA is the introduction of “Trump Accounts”—IRA-like savings accounts for children born between 2025 and 2028. “For any children that are born this year through 2028, they’re getting a baby shower gift from Congress, from the president, and that is through a Trump account,” explained Cory. Each eligible child receives a $1,000 federal seed contribution, and parents or grandparents can contribute up to $5,000 per year (after-tax), with funds growing tax deferred. “The idea here is that this is intended for the money to be able to grow tax deferred to really just give the next generation a kickstart early on,” Cory said. While the investment options are limited, these accounts offer a new opportunity for early financial growth.
Healthcare Costs and ACA Premium Tax Credits
Healthcare planning is another area affected by the OBBBA, particularly for retirees under 65 who rely on ACA marketplace coverage before Medicare eligibility. The enhanced ACA premium tax credits, which have subsidized premiums for the past four years, are set to expire at the end of 2025. “If you are retired or planning for retirement and you are not at Medicare age yet, really mapping out and planning what your taxable income is going to look like so we can work within these thresholds and ultimately plan accordingly for the cost in your financial plan is crucial,” Cory advised. Without renewal, premiums could rise by 18% or more, making tax planning even more critical for those in this group.
Estate Planning Updates
The OBBBA brings stability to estate planning by making the lifetime gift and estate tax exemption permanent at $15 million per person ($30 million per couple), indexed for inflation. “This just gives people a big picture. We have more stability around what an estate tax exemption is going to look like. And obviously $30 million for a married couple is a meaningful number,” Cory explained. The bill also encourages family gifting strategies, allowing individuals to gift up to $19,000 per recipient annually without tax consequences—a number likely to increase in the future.
Charitable Giving Opportunities
Charitable giving receives a boost under the new law. Starting in 2026, non-itemizers can deduct up to $1,000 (single) or $2,000 (married) in charitable donations. For itemizers in the top tax bracket, a new floor requires donations to exceed 0.5% of AGI to claim deductions, and the deduction rate is capped at 35%. “If you don’t itemize and you give to charity, you have good news because next year you’re going to be able to deduct some of that, which you’re currently not able to do,” Jake said. Additionally, a new tax credit for donations to schools will be available in 2027.
Market and Industry Implications
The OBBBA’s impact extends to various industries. Sectors likely to benefit include traditional energy, chip manufacturers, defense, and nuclear energy, while solar, wind, electric vehicles, healthcare providers, and insurance may face challenges. “With a heavy Republican Congress and president, you can expect some of the heavy traditional Republican industries to do well. So, oil companies, chip manufacturers, defense, nuclear,” Jake observed. However, he cautioned against making investment decisions based solely on legislative changes: “We don’t try to predict the future. We stay diversified. We like good companies, strong growers, strong dividend payers.”
The market, as the presentation notes, is a forward-looking mechanism and has already priced in many of these changes. “The main point here really to take away is that the market is a forward-looking mechanism. So, before we saw the 870 pages that were out there for everyone to read, the market was pricing in a lot of what has changed around this,” Cory explained.
The Importance of Ongoing Planning
The overarching message from Falcon Wealth Advisors is the importance of proactive, ongoing planning. “Please do yourself a favor, do us a favor. Schedule a tax planning meeting with our financial planning group. We have four financial planners who have tax planning software that’s already been updated with this 870-page beast of a document,” Jake urged. With so many moving parts and new opportunities, regular reviews and updates are essential to help maximize benefits and minimize risks.
The OBBBA brings lasting and temporary changes to taxes, retirement, and estate planning. Staying informed and working with a trusted advisor is key to maximizing benefits and minimizing risks. Regular reviews and proactive planning will help individuals and families confidently navigate this evolving financial landscape and achieve their long-term goals.
