Category Taxes & Tools

President Trump’s “Big Beautiful Bill” (BBB), passed in 2025, made the lower tax rates for individuals, trusts, and estates permanent, which were originally set to expire. This is big news for retirees because it gives them a chance to rethink how they manage their retirement money. One smart move financial experts suggest is converting traditional IRAs into Roth IRAs. This allows retirees to pay taxes now, while rates are low, and let their money grow tax-free for the future. Another change tied to the SECURE 2.0 Act gives retirees more ways to save and plan smartly for both their retirement and the legacy they leave to family.

In August 2025, the Congressional Budget Office (CBO) issued a warning about a new $3.4 trillion tax and spending plan introduced by the Trump administration. While supporters of the plan say it will boost the economy by lowering taxes and encouraging more spending and investment, the CBO says it could lead to serious financial problems. Because the plan increases the federal deficit, automatic cuts to programs like Medicare may be triggered by 2027, possibly reducing benefits by almost $500 billion. This has many retirees, healthcare experts, and lawmakers worried about the future of key programs like Medicare and Social Security.

Former President Donald Trump’s proposal to cut payroll taxes that fund Social Security is raising serious concerns about the program’s future. According to new research, these tax cuts could push up the date when Social Security runs out of money—from 2035 to as soon as 2032. While lower payroll taxes might help workers take home more pay in the short term, experts warn that without new funding sources, future retirees could face significant benefit cuts. This plan comes during a time of high inflation and economic uncertainty, making Social Security’s long-term stability an even more important issue for young and older Americans alike.

On August 15, 2025, the IRS announced that there will be no changes to federal tax withholding for the year 2025. This means that how much is taken out of your paycheck for taxes will stay the same for now. The news comes just weeks after President Donald Trump signed a major new tax law called the “One Big, Beautiful Bill Act” on July 4, 2025. This law brings big changes to things like deductions, tax credits, and how people file their taxes—but those changes won’t affect paychecks until 2026. The IRS says this delay will give workers, employers, and tax professionals time to get ready before anything changes.

In July 2025, the U.S. government passed a major tax law called the One Big Beautiful Bill Act (OBBBA), which brought big changes to how taxes work for many Americans. One of the most talked-about changes is how the law affects charitable giving and deductions for state and local taxes. For the next few years, donations to charities may be treated differently on tax returns, which could impact how and when people choose to give. The law also temporarily raises the cap on state and local tax (SALT) deductions to $40,000 for most families—giving some taxpayers in high-tax states a break. Plus, from 2025 to 2028, any money earned from overtime work won’t be taxed by the federal government, which is good news for hourly workers and those putting in extra hours. These updates may help both regular workers and wealthy individuals manage their finances differently during this time.

In August 2025, lawmakers introduced the Protecting and Preserving Social Security Act to strengthen the Social Security program and make it last longer. One major change in the bill is switching to a different measure of inflation called the Consumer Price Index for the Elderly (CPI-E). This better reflects the spending habits of seniors, especially on things like health care. The bill also aims to improve fairness by lifting the cap on how much of a person’s income is taxed for Social Security, meaning high earners would pay more. Together, these changes could extend the program’s ability to pay full benefits from the year 2035 to 2054, giving it 19 extra years of solvency. Additionally, the bill ensures that benefit increases won’t impact eligibility for programs like Medicaid or Supplemental Security Income, which helps protect low-income seniors.