Imagine looking up from a busy tax season and discovering that Congress just passed a sweeping new tax law with the audacious name “One Big Beautiful Bill Act.” Signed into law over the July 4, 2025 weekend, this multitrillion-dollar package blends major tax cuts with spending changes to the social safety net1. As a CPA practice owner eyeing retirement, you might wonder: Does this one “big, beautiful” bill change the game for my own retirement plans? In many ways, it does. Mostly by extending tax breaks and introducing new provisions that could impact how you strategize your retirement income, savings, and legacy. But it also comes with complexities and expiration dates that savvy planners need to note.
In this article, we’ll break down how the new law affects your retirement planning. We’ll cover its key tax changes, what it means for Social Security benefits, the (surprisingly unchanged) retirement plan rules, new opportunities in estate planning, and practical steps for CPA firm owners.
A New Tax Landscape: Lower Rates and Extended Breaks
The One Big Beautiful Bill (OBBBA) essentially locks in the tax-friendly environment that individuals and business owners have enjoyed in recent years. Many tax provisions that were set to expire after 2025 have been made permanent or extended, giving some certainty to your long-term planning. For example, the individual income tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) from the 2017 Tax Cuts and Jobs Act aren’t going up as originally scheduled – they’ll remain at these rates moving forward2. This means you likely won’t face an automatic tax hike on your ordinary income in 2026, a relief when mapping out future retirement withdrawals or business sale proceeds.
Pass-Through Business Deduction
If your CPA practice income currently benefits from the 20% Qualified Business Income (QBI) deduction under IRC §199A, that break is now permanent3. The law “makes the 199A QBI deduction provisions permanent and keeps the deduction rate at 20%”3. In practical terms, eligible business profits will continue to get that 20% carve-out each year. A big caveat: CPAs and other professional service firms are considered specified service trades or businesses (SSTBs) – meaning high-earning practitioners may not qualify for QBI deductions above certain income thresholds. So if your taxable income is above the SSTB phase-out (around the low $300,000s for joint filers), you likely weren’t getting this deduction anyway. But for those under the limit or who plan to scale back income in semi-retirement, it’s good to know this tax saver isn’t disappearing in 2026 as previously feared.
State and Local Tax (SALT) Deduction Cap
In a nod to taxpayers in high-tax states, the new law temporarily raises the SALT deduction cap. From 2025 through 2029, single-filers can deduct up to $20,000 of state and local taxes (property, income, sales) on their federal return (previously capped at $10,000)4. For a married couple, that’s up to $40k. This change could notably boost itemized deductions for many CPA families who pay far above the old $10k limit in combined state income taxes and property taxes.
Keep in mind, though, this is still a cap – not a full return to pre-2018 unlimited SALT deductions. If you live in a state like NY or CA and pay, say, $60k in state tax, you’ll still be capped at $40k. And after 2030, the cap is scheduled to sunset, at which point Congress would need to act again or else (in theory) SALT deductions revert to no cap. In short, enjoy the greater deduction while it lasts, but factor in that it ends in 2030 unless extended.
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Finally, one tax credit change to note: the Child Tax Credit was tweaked slightly. Starting in 2025, the credit maximum goes up from $2,000 to $2,200 per child, and the phase-out income thresholds ($200k single / $400k joint) are made permanent6. If you still have dependent children, you might see a minor bump at tax time. If not, this doesn’t affect you, but it does underscore how many provisions in the OBBBA are temporary boosts from 2025–2028 or so, set to drop off later7.
Social Security and Senior Benefits: Tax Relief for Retirement Income
For those nearing or in retirement, one of the headline wins of the new law is a significant tax break on Social Security benefits. The bill introduced a special “senior deduction” of $6,000 for single filers (or $12,000 for married couples) age 65 and up8. This is an extra deduction on top of the regular standard deduction for seniors. In practice, this extra $6k/$12k directly reduces the amount of income that could make your Social Security benefits taxable.
Under prior law, Social Security benefits are taxable only if you have additional income above certain modest thresholds. Many middle-income retirees end up having to count up to 50% or even 85% of their benefits as taxable income if they have substantial other earnings, IRA withdrawals, etc. But now, with the additional senior deduction kicking in from 2025 through 2028, far fewer people will hit those taxation thresholds. In fact, the White House and SSA project that almost 88% of Social Security beneficiaries will owe $0 federal tax on their benefits going forward – up from roughly two-thirds previously9.
Social Security Tax Relief Impact
Percentage of Seniors Paying Federal Tax on Social Security Benefits
Figure: The share of Social Security beneficiaries who pay federal tax on their benefits is expected to drop sharply under the new law. Before OBBBA, about 34% of seniors had to include some portion of their Social Security in taxable income. After the law, that drops to roughly 12% (meaning nearly 9 in 10 seniors will pay no tax on Social Security benefits).
For example, consider a married CPA couple with combined Social Security of $40,000/year and additional retirement income of $30,000 from a part-time consulting gig. Under old rules, a portion of their Social Security would likely be taxable because their other income pushes them over IRS limits. But under the new law, that extra $12,000 deduction for being 65+ could shelter all of their benefits from tax. They keep more of their Social Security in their pocket. This is a meaningful boost, especially for retirees on somewhat fixed incomes.
A few important details about this senior deduction: it phases out once your modified adjusted gross income exceeds $75,000 (single) or $150,000 (joint)8. Above those levels, the extra deduction gradually vanishes – so higher-income CPAs in retirement (with healthy pensions, RMDs, or consulting income) may not get the full benefit. In other words, if you expect a six-figure retirement income, you might still pay tax on part of your Social Security (much as before). The deduction is really targeted at middle-class retirees. It’s also temporary: the extra $6k/$12k is available for tax years 2025 through 2028, and then sunsets (unless extended later)8,7.
Planning considerations: If you’re on the cusp of retiring or starting Social Security, this change could influence when you choose to claim benefits or do Roth conversions. For instance, you might plan to take advantage of these 2025–2028 years to pull income from IRAs up to the threshold while having 0% of your Social Security taxed – something not previously possible at higher income levels. It effectively raises the “tax-free” income amount for seniors for a few years. On the flip side, be mindful that after 2028, this deduction disappears. If you’ll be retiring later or have longevity, don’t bank on never paying taxes on benefits – future Congresses could change rules again.
Company Retirement Plans
Lastly, a quick note on company retirement plans if you have employees: the law did not add burdens, and in some cases, it expanded credits. For instance, it increased the tax credit for small businesses that offer retirement plans (like a new 401(k) plan startup credit) and maintained the 401(k) auto-enroll provisions from prior law. If anything, it’s a bit easier and more rewarding as an employer to contribute to your employees’ retirement (you might get larger credits and deductions doing so)13. So CPA firm owners can continue building their own nest egg through a Solo 401(k) or SEP, etc., and potentially take advantage of credits if expanding benefits to staff. There’s also no change to IRA contribution rules – you and your spouse can still contribute to IRAs (traditional or Roth if eligible) just as before.
Estate and Legacy Planning: Higher Exemptions and New Tools for Family Wealth
If part of your retirement vision includes leaving a legacy – whether passing on your CPA practice, supporting your heirs, or charitable giving – the changes in estate tax law will be of keen interest. The OBBBA delivered a permanent boost to the federal estate tax exemption. Starting January 1, 2026, the estate (and gift) tax exemption jumps to $15 million per individual, indexed for inflation going forward14. This replaces the previous schedule, where the exemption was going to fall by about half in 2026. (Under prior law, the ~$13 million per person exemption in 2025 would have reverted to roughly $6–7 million in 2026.) Now, instead of a reversion to ~$7M, we get a flat $15M per person (about $30M for a married couple) that will continue to rise with inflation after 202514. And unlike past tax cuts that had sunset dates, this one is written to be permanent – meaning it stays until/unless Congress actively changes it in the future.
Federal Estate Tax Exemption Changes
Per Individual (in millions)
Impact for Your Estate Planning
Figure: Federal Estate Tax Exemption per individual (in millions). Without the new law, the exemption per person would have dropped to around $7 million in 2026. With the One Big Beautiful Bill Act, the exemption is set at $15 million from 2026 onward (indexed for inflation). Fewer estates will face federal estate tax under the higher threshold.
For the vast majority of CPA practice owners, this change means you likely won’t owe any federal estate tax. If your net worth is well under $15 million, you were unlikely to be hit by the estate tax even before, and now you’re even further in the clear. If your estate is around that $10–15M range or higher, the new law is a significant opportunity: you just gained additional room to transfer wealth tax-free. In fact, folks who had already used up the previous $12–13M exemption will get an extra ~$1–2 million of gifting capacity come 202614. High-net-worth individuals can plan new gifts or trusts to utilize that expanded exemption. And those who expected to do frantic “use it or lose it” gifting by the end of 2025 (when we thought the exemption would shrink) can breathe easier. The pressure is off – the exemption won’t suddenly plummet at the stroke of midnight 2025.
In Conclusion
So, does the One Big Beautiful Bill affect your CPA retirement? Absolutely – and mostly for the better. It extends and expands tax breaks that can increase your net retirement income, preserves the full toolkit of retirement savings options, and raises the ceiling on wealth transfer so you can pass on more to your heirs or charitable causes. In the near term, it’s a friendly tailwind as you approach retirement’s finish line. Just remember that some of these winds may die down after a few years. By staying informed (we’ll continue to monitor tax changes for you) and proactively adjusting your strategies, you can capitalize on the goodies while they last and cushion yourself against future shifts.
At CPA Retirement Solutions, our mission is to empower CPAs like you to retire with confidence and clarity. Whether it’s interpreting new tax laws, optimizing your withdrawal strategy, or ensuring your practice’s transition funds your next chapter, we partner with you every step of the way (in plain English, not jargon). The tax code may throw curveballs – big, beautiful ones or otherwise – but together we’ll keep your retirement plan on target.
Appendix (Sources):
- Investopedia – Hayes, A. “7 Things Retirees Need to Know About the Big Beautiful Bill Act.” (July 9, 2025). Describes OBBBA as a sweeping multitrillion-dollar package blending tax cuts with spending reductions and safety net changes.
- NAPA Net – Godbout, T. “‘One Big Beautiful Bill’ Signed; Retirement Plans Avoid Negative Impact.” (July 6, 2025). Notes that the law makes permanent the expiring individual tax rate provisions of TCJA 2017.
- Buchanan Ingersoll & Rooney Law Firm – “One Big, Beautiful Bill… Simplified.” (July 3, 2025). Key provisions summary: confirms QBI 20% deduction made permanent; Opportunity Zone program made permanent; etc.
- NAPA Net – Godbout, T. (ibid.). Notes the SALT deduction cap is expanded to $40,000 until 2030 (from $10k).
- IRS Newsroom – “One Big Beautiful Bill Act: Tax deductions for working Americans and seniors.” (July 25, 2025). Details new deductions (overtime, tips, car loan interest) and their income phase-outs.
- Fidelity Investments – “How the One Big Beautiful Bill may affect families.” (July 21, 2025). Describes changes to Child Tax Credit ($2,200 from 2025, etc.) and other family-related provisions.
- Investopedia – Hayes, A. (ibid.). Highlights that many individual tax breaks (senior deduction, tip/overtime deduction, certain credits) sunset after Dec 31, 2028.
- Investopedia – Hayes, A. (ibid.). Explains the new $6,000 (single) / $12,000 (joint) additional standard deduction for filers age 65+, effective 2025–2028, with phase-out above $75k/$150k MAGI.
- Social Security Administration Blog – “Social Security Applauds… Historic Tax Relief for Seniors.” (July 3, 2025). States nearly 90% of Social Security beneficiaries will no longer pay federal income tax on their benefits under the new law.
- Investopedia – Hayes, A. (ibid.). Mentions over $1 trillion in cuts to Medicaid and SNAP (social safety net programs) as part of the law’s spending offsets.
- NAPA Net – Godbout, T. (ibid.). Emphasizes that the final legislation did not include any provisions to curtail retirement plan contribution limits or force Roth-only contributions – a “big win” for plan sponsors and participants.
- Investopedia – Hayes, A. (ibid.). Notes the law did not change the RMD start age beyond what SECURE 2.0 set (73 to 75), but mandates a Treasury study on imposing RMDs on Roth IRAs and large 401(k) balances, which has raised concerns among planners.
- Congress.gov – H.R.1 (119th Congress) Summary. (Sec. 70401) Increases the tax credit for small employers providing child care facilities; (Various sections) maintains incentives for retirement plan creation and contributions (no new taxes on plans).
- Dentons Law Firm – “Leveraging the Permanent Estate Tax Exemption.” (July 21, 2025). Confirms the OBBBA permanently increased the federal estate/gift tax exemption to $15 million per individual (indexed from 2025), effective Jan 1, 2026.
- Investopedia – Hayes, A. (ibid.). “Grandparent 529 strategies expand” – outlines how 529 plans can now cover K-12 tutoring, apprenticeship costs, caregiving certifications, etc., and that rollover-to-Roth provisions remain intact.
- Fidelity Investments – “Trump Account for minors” section in How the OBBBA may affect families. Summarizes the Trump Account features: $1,000 federal seed deposit for babies 2025–2028, $5,000 annual contributions, tax-deferred growth, conversion to IRA at age 18.
- Proskauer Tax Talks blog – Corn, R. et al. “President Trump Signs One Big Beautiful Bill Act into Law.” (July 22, 2025). Notes an above-the-line charitable deduction for non-itemizers ($1k/$2k) included in the Act, among other individual changes.
- Proskauer Tax Talks blog – Corn, R. et al. (ibid.). Describes changes to Qualified Small Business Stock (QSBS) exclusion: for stock acquired after July 4, 2025, the cap increases to $15 million (from $10M) or 10x basis, which could benefit certain business sales.
