Retirement & Senior Deduction

The OBBB brings sweeping changes to retirement, taxes, healthcare, and more. We’ve created easy-to-digest breakdowns to help you understand what matters most.”

Extra $6,000 in Deduction

Applies to seniors 65+ ($12,000 for married couples filing jointly).

Reduces taxable income, helping shield Social Security benefits from taxation.

Income thresholds: $75,000 for single filers / $150,000 for joint filers.

Makes monthly retirement income go further, providing more flexibility in retirement spending.

Enhances overall retirement security by lowering tax liability.

Temporary Window of Savings

Act fast – these deductions expire after 2028!
4-year opportunity to optimize your retirement:

Restructure your income for maximum tax efficiency.
Take advantage of Roth conversions while thresholds are favorable.
Reduce future Required Minimum Distributions (RMDs) to keep more money in your pocket

How to Plan for New Income Thresholds

Use Qualified Charitable Contributions (QCDs) from IRAs to reduce Adjusted Gross Income (AGI) while supporting causes you care about.

Prioritize Roth or taxable accounts for withdrawals to help keep income under AGI limits

Manage AGI strategically by:

Controlling interest income
Timing IRA withdrawals carefully
Harvesting investment losses

Key takeaway: Staying below the AGI threshold is crucial for maximizing retirement benefits and deductions

What Seniors Should Do Now?

The OBBB Act offers new opportunities to protect Social Security, reduce taxes, and make your retirement income go further. Start by reviewing your income, planning withdrawals, and exploring Roth conversions—each next step is detailed in the following slides.

Run an Annual Income Tune-Up

Check your income each year to see if you’re under the $75,000 single / $150,000 joint AGI threshold. This sets the foundation for taking full advantage of deductions and tax-saving strategies.

Time Your Withdrawals Wisely

Delay or reduce IRA withdrawals when possible. Coordinating withdrawals with your income can help you stay under AGI limits and keep more money in your pocket.

Consider Roth Conversions

Convert traditional IRA funds to a Roth before 2029 to lower future Required Minimum Distributions (RMDs) and gain greater control over taxable income in retirement.

Plan Your Social Security Strategy

Timing Social Security benefits strategically can create years of tax-free income. Combine this with income and withdrawal planning to maximize tax efficiency.

Talk With Your Advisor

Every retirement situation is unique. Review your income, withdrawals, Roth conversions, and Social Security strategy with your advisor to create a personalized plan.

Speak to a Professional

Ready to make the most of your retirement under the new OBBB rules? Schedule a consultation with our team to review your income, withdrawals, Roth conversions, and Social Security strategy.

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