The Big Beautiful Bill & You

Hi, Tom here.

Thanks to everyone who came out to the Wealth Workshop yesterday. We had a great conversation. I’ll keep you posted on our next one.

On July 4th, President Trump signed the “One Big Beautiful Bill Act” into law. It's the biggest tax change since 2017. Here's what it means for your taxes, your assets, and your retirement plan.

Let’s dive in.

They called it the “One Big Beautiful Bill Act.”

I am not sure tax legislation could be considered beautiful but none the less, we have a new tax bill as of July 4th.

This passage was a key part of Trump’s campaign last summer and a year later, with a lot of back and forth between the Republicans, we have a new tax bill.  

We’ve surveyed thousands of readers as they come into the tmrw newsletter community and taxation is high on the list of issues to solve.

And with this bill being the biggest tax legislation change since 2017, it’s worth diving into it, as the changes will have lasting consequences as you continue to grow and protect your nest egg.

The Bill (in Plain English)

I’ll be straight with you, this bill isn't revolutionary. I read through a few different commentary’s and the takeaway is: there’s not a lot new.

But that’s not a bad thing.

This Big Beautiful Bill is a continuation of the 2017 Tax Cuts and Jobs Act (TCJA). This legislation was President Trump’s first crack at changing tax legislation in our country.

In my experience working with clients, the TCJA was mostly a win, except for the SALT cap, which hit coastal families hard due to high property and state income taxes.

The biggest issue with that bill was that many of the provisions in it had set end dates. When that end date approached, which it was, many of the provisions in that bill were to revert to the 2016 era of taxation.

Many families, including families we work with at Fjell, were staring down the sunset of TCJA provisions that could have cost them heavily.

No surprise this bill turned out to be a bit of a non-event. If it didn’t pass, with many more high-net-worth families today than in 2016, the consequences would have been, well, expensive.

So instead of theorizing about what could or should have happened, this Big Beautiful Bill is now permanent law. Let’s get into what you can expect when you file next year:

1. Individual Tax Rates
The lower tax rates you're accustomed to are here to stay. The top individual tax rate remains capped at 37%.

2. Standard Deduction Boost
Your standard deduction, the initial amount subtracted before taxes kick in, just increased:

• Married filing jointly: now $26,000 (up from $24,000).

• Head of household: now $19,500 (up from $18,000).

• Single filers: now $13,000 (up from $12,000).

These new amounts are locked through 2028, with inflation adjustments continuing for lower and middle brackets.

3. Child Tax Credit (CTC) Improvements
The popular $2,000 per child credit remains:

• Temporarily increasing to $2,200 per child (2025 to 2028).

• Post 2028, it'll adjust upward with inflation.

• Income limits remain: $400,000 for married couples, $200,000 for singles.

4. Personal Exemptions Gone for Good
Personal exemptions, extra deductions based on family size, are permanently removed.

5. Alternative Minimum Tax (AMT) Relief
Families earning less than $1 million benefit greatly, as the AMT is repealed for them, offering relief to many high earners hovering just below that threshold.

6. Higher SALT Deduction Cap
State and Local Tax (SALT) deduction limits rise significantly, from $10,000 to $40,000, for incomes under $500,000. Above this threshold, benefits gradually phase out, providing partial relief to higher-income earners.

7. Estate Tax Exemption Stays Generous
Estate tax exemptions remain high ($13.99 million per individual, inflation adjusted), keeping most families free from federal estate taxes.

8. Bigger Business Income Deduction
Business owners will see their qualified business income deduction rise permanently to 23%, effectively reducing their overall tax burden.

9. Itemized Deductions with a Twist
Itemized deductions return permanently, but there's a new wrinkle for high earners:

• Your deductions shrink by 2/37 of whichever is smaller: total itemized deductions or the amount your income exceeds the 37% tax bracket threshold. Note: this will be tricky to calculate if you are itemizing, beware.

So this is what you should consider doing.

This bill might feel like more of the same from the last seven years. But that doesn’t mean your strategy should stay on autopilot. If you're entering retirement with meaningful assets, now is the time to rethink how you draw income, pay taxes, and preserve wealth.

If you joined us at the Wealth Workshop earlier this year, you heard about the two sides of the tax code: one for asset owners and one for W2 earners.

A lot of you are heading into retirement with $1–10 million.

You’re earning more than ever, and your assets have never been more valuable—thanks to a decade-long mix of low interest rates, government liquidity, and now, AI. It’s been a great run.

But now you're feeling the squeeze. W2 income is getting taxed heavily, and you’re reading more about how tax planning matters as you approach retirement. That planning should focus on the types of assets you own, the types of accounts they live in and how you manage your investment strategy.

For most Americans on the “regular side,” tax strategy is pretty simple. You take the standard deduction and move on.

Where the real opportunity lies is when you leverage your asset and account types for your own benefit, and while that could be, and was, a single edition in and of itself, here are your major pillars to hit, from a tax perspective, as you approach retirement.

1. Liquidity Planning

   The tax man doesn’t care if the market is down. If you’ve had a great year and take profits, you could find yourself selling more than you want come April just to cover your bill. Your cash flow strategy needs to anticipate that. Other wise your tax problems compound, creating multi-year quarterly payment misery.

2. Tax Diversity

   Having some Roth, some Traditional, and a brokerage with a credit line, is where I think most people should end up, if possible. While this tax legislation was a punt in my opinion. I have no question, in the years to come, there will be some nasty legislation to pay for the debt our country has accrued. Having tax flexibility on your own end may not be the most “tax efficient” thing to do today, but may save yourself down the line.

3. Execution

   Ideas don’t save you money. Execution does. We had a client lined up for a Roth conversion at the start of the year. We had paperwork drafted, ready to go when the markets gave us an opening. The market dropped in April, we pulled the trigger, and locked in the benefit. That’s the power of being ready.

4. The Right Income

   CDs are back! While they are extremely convenient for millions of Americans, they are taxed at the Federal Income Tax Brackets, furthermore, with higher interest rates looking at staying around longer, there are many opportunities to craft a tax efficient, liquid, and diversified portfolio to support yourself in retirement.

That got a little long, but it matters. The Big Beautiful Bill may have been a non-event, but the opportunity to build a smarter, more tax-efficient balance sheet is very real.

I appreciate every single one of you. Thanks for your time. If you want to talk with me directly about this, head over here.

Tom