Retirement Planning

How does the One Big Beautiful Bill affect Retirement Planning?

New Opportunities for Roth Planning

Starting in 2026, anyone earning more than $145,000 will be required to make catch-up contributions in Roth dollars.

This is an opportunity rather than a limitation. By strategically balancing pre-tax and Roth contributions today, you can build flexibility into your retirement income strategy for decades to come.

Roth accounts grow tax-free, and withdrawals in retirement are not subject to income tax. This means you will have more control over your tax exposure in the future.

Planning Considerations

Review your current 401(k) and IRA contribution mix.
Consider converting a portion of your pre-tax dollars to Roth while tax rates remain historically low.
Evaluate whether your employer plan supports Roth catch-ups or conversions.

Now is the time to make sure your retirement plan is structured for tax flexibility, not just for accumulation, but for distribution.

Permanent Extension of Lower Tax Rates

Before the passage of the One Big Beautiful Bill (OBBB), the lower federal income tax brackets introduced under the 2017 Tax Cuts and Jobs Act (TCJA) were scheduled to expire after 2025.

The OBBB makes these lower brackets permanent, locking in today’s rates:
10%, 12%, 22%, 24%, 32%, 35%, and 37%.

What this means for you:

Greater predictability when planning Roth conversions or taxable withdrawals.
More time to optimize tax brackets strategically in retirement.
Reduced urgency around “beat the sunset” tax planning but continued opportunity to fine-tune conversions and contributions annually.

At Syntegra, we help clients coordinate Roth conversions, charitable giving, and business income planning to take full advantage of these tax rates.

Why Roth Flexibility Matters in Retirement

Tax diversification is one of the most powerful tools retirees can use to manage income, minimize taxes, and maintain flexibility.

Unlike traditional accounts, Roth IRAs are not subject to Required Minimum Distributions (RMDs), allowing your money to continue compounding tax-free for longer.
During retirement, drawing from Roth assets can also help reduce Medicare premiums and avoid higher marginal tax brackets that may be triggered by Social Security or investment income.

Key benefits of Roth Diversification

Control – Choose which account to draw from each year for the best tax outcome.
Longevity – Keep funds growing tax-free without mandatory withdrawals.
Legacy – Pass Roth assets to heirs income-tax-free.

Building both Roth and pre-tax savings gives you long-term flexibility and helps ensure your retirement income remains efficient, strategic, and resilient in any tax environment.

How will this impact you?

Every household’s tax and retirement picture is unique. Our advisors specialize in integrating Roth strategies, tax planning, and distribution coordination to help you stay ahead of the curve.

Schedule a consultation with Syntegra Private Wealth Group to explore how the One Big Beautiful Bill may affect your long-term plan and what steps you can take today.

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