How the New “One Big Beautiful Bill” Impacts Your Retirement (and What You Should Do Now)

If you’ve been paying attention to the latest tax legislation, you’ve probably heard about the recently passed "One Big Beautiful Bill." At first glance, it might seem like just another round of political noise. However, for retirees and those approaching retirement, this bill brings substantial changes that could significantly impact your financial future.

At The Noble Group, we’ve combed through the fine print to bring you the most relevant highlights. In this article, we’ll walk you through six key provisions from the bill, and more importantly, what you can do to take advantage of them now.

Let’s dive in.

1. Lower Tax Rates Made Permanent

The Tax Cuts and Jobs Act of 2017 reduced tax rates and expanded tax brackets, but those cuts were set to expire in 2025. The new legislation makes those lower rates permanent, effectively preventing tax increases for approximately 62% of taxpayers, according to the nonpartisan Tax Foundation.

What This Means for You

If you’re drawing income from IRAs, pensions, Social Security, or business distributions, you’ll likely keep more of your earnings each year. Plus, strategies like Roth conversions or realizing capital gains just got more tax efficient.

Action Steps:

• Pre-retirees: Consider accelerating income like bonuses, deferred comp, or stock options into these lower-rate years.

• Retirees or those with low income: Consider converting more assets to Roth IRAs.

• Everyone: Map out your tax brackets with your advisor and watch out for "bracket creep" from RMDs or Social Security taxes.

2. Increased Standard Deduction

Starting in 2025, the standard deduction will increase to $15,750 for individuals and $31,500 for joint filers, with annual inflation adjustments starting in 2026.

What This Means for You

You get to shield more income from taxes. But it may reduce the advantage of itemizing – unless you plan carefully.

Action Steps:

• Use this additional headroom to your advantage when realizing capital gains or generating income.

• Strategically time medical expenses or other deductions to exceed the new thresholds every few years.

• Consider grouping charitable contributions into one year using a Donor-Advised Fund (DAF). Check out our video here for more information.

3. Enhanced Standard Deduction for Seniors

If you’re 65 or older, you’ll be eligible for an additional $6,000 standard deduction through 2028. The deduction phases out at a 6% rate for individual filers whose income is more than $75,000 or joint filers whose income exceeds $150,000, fully phasing out at $175,000 for individual filers and $250,000 for joint filers.

What This Means for You

A married couple over 65 and under the income threshold could deduct up to $46,700 in 2025, potentially eliminating taxes on their Social Security benefits altogether.

Action Steps:

• Manage income from Roth conversions or capital gains to stay under the threshold.

• Consider deferring income from annuities, pensions and IRA withdrawals to preserve eligibility in higher-benefit years.

• Look at potentially using Qualified Charitable Distributions (QCDs) from your IRAs to reduce modified adjusted gross income (MAGI) without impacting your standard deduction.

4. Higher State and Local Tax (SALT) Deduction Cap

The SALT deduction cap increased from $10,000 to $40,000 for those earning under $500,000 (single or joint filers), with a phaseout beginning at $500,000 and ending at $600,000. These increased cap and income thresholds will increase slightly each year, and after five years, the cap will revert back to $10,000, so it’s only here for a limited time.

What This Means for You

This change can greatly benefit taxpayers in high-tax states, especially those with large property tax bills or business pass-through income.

Action Steps:

• Consider bunching two years of property tax payments into one year to maximize the benefit.

• Alternate between itemizing and taking the standard deduction each year for greater tax efficiency.

• Business owners: Talk with your CPA about still using potential state-level workarounds to bypass the cap.

5. Estate Tax Exemption Doubled

Starting in 2026, the federal estate tax exemption increases to $15 million per person, or $30 million for married couples. This is doubl what it would have been under previous law.

What This Means for You

It’s a powerful window of opportunity for legacy and estate planning, especially if you're a high-net-worth individual or family.

Action Steps:

• Start gifting now: transfer assets to trusts or heirs while the exemption is high.

• Review and possibly revise your estate documents.

• Consider advanced strategies like a Spousal Lifetime Access Trust, Irrevocable Life Insurance Trusts, or Family Limited Partnerships.

6. Auto Loan Interest Deduction Returns

You can deduct up to $10,000 in interest on auto loans for vehicles assembled in the U.S. (excluding fleet and commercial vehicles). This deduction applies from 2025 through 2028 and phases out for single filers above $100,000 and joint filers above $200,000. This brings back a deduction that’s been off the table for decades.

What This Means for You

This could be a helpful deduction for middle-income earners planning to buy a new vehicle.

Action Steps:

• If you plan to buy a car, consider financing rather than paying all cash.

• If you’ve already financed a qualifying vehicle in 2025, work with your CPA to properly track deductible interest.

Final Thoughts: Don’t Just Know. Act.

Understanding these six provisions is only the first step. To take full advantage of them, you need to take action, ideally before temporary benefits disappear or new laws shift the playing field again.

To put this into motion, email us at education@thenoblegroup.com to schedule a complimentary review with us.

Whether you're planning for retirement, optimizing your taxes, or preserving your legacy, we’re here to help.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.Investing involves risk including loss of principal. No strategy assures success or protects against loss.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Limited partnerships are subject to special risks, such as potential illiquidity, and may not be suitable for all investors.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

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