Summary
Congress passed a new law called the One Big Beautiful Bill Act (OBBBA) that permanently keeps many of the tax cuts from the Tax Cuts and Jobs Act (TCJA). These changes affect retirement planning, tax deductions, and business income deductions, providing more stability for individuals and small business owners.
Key Facts
- The One Big Beautiful Bill Act makes many tax cuts from the TCJA permanent.
- Permanent reduced tax rates help with long-term retirement planning.
- The standard tax deduction for those aged 65 and older now includes an added $6,000 per person.
- The Qualified Business Income (QBI) deduction, which benefits small businesses, is now permanent.
- Estate and gift tax exemptions are permanently set at higher amounts than before.
- 529 plans will allow higher withdrawals and can now be used for a wider range of educational expenses starting in 2026.
