Customized Financial Strategies

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At Senior Financial Services we help our clients by designing a customized financial strategy that often combines more than one product. Each part of the strategy will often dovetail with the others to produce a comprehensive plan addressing asset protection and growth, income that meets or exceeds the client’s needs, efficient tax strategies as well as efficient methods of passing assets to your heirs. Contact Fred Orentlich at 800-679-2858
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Maximize Your Retirement with Senior Financial Services Inc New Legislation and its Effects on Retirement Planning Part 2

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At Senior Financial Services we don’t take shortcuts. Hard work and research are hallmarks of our practice.

For help with your retirement planning needs, contact Fred Orentlich of Senior Financial Services at 800-679-2858

 

Retirement Tax Planning Guide: One Big Beautiful Bill (2025–2028)

1. Social Security Timing

Factor

Before OBBBA

After OBBBA

Senior Deduction

Not available

Extra $6,000 ($12k married) reduces taxable income

Social Security Taxable?

Can be taxed at 50–85%

May be fully or mostly tax-free if income < thresholds ($75k single / $150k married)

Planning Tip

Claim early to reduce taxes

Can safely delay to maximize lifetime and survivor benefits

2. Required Minimum Distributions (RMDs)

  • Before OBBBA: Large RMDs could push you into higher tax brackets.
  • After OBBBA: Lower effective taxes and senior deduction allow more flexibility in timing.
  • Planning Tip: Coordinate withdrawals around deductions to reduce lifetime taxes.

3. Roth Conversions

  • Before OBBBA: Converting large amounts could trigger high taxes.
  • After OBBBA: Lower taxable income thresholds make conversions more favorable.
  • Planning Tip: Convert more in low-income years (2025–2028) to lock in tax-free growth and reduce future RMDs.

4. Medicare Premiums (IRMAA)

  • Before OBBBA: High RMDs or conversions could increase MAGI, raising premiums.
  • After OBBBA: Deductions may reduce MAGI, lowering premiums.
  • Planning Tip: Sequence withdrawals and conversions to stay below IRMAA thresholds.

5. State & Local Tax (SALT) Deduction

  • Change: Temporary increase from $10k → $40k through 2029.
  • Planning Tip: High-tax state residents may benefit from itemizing instead of standard deduction.

6. Estate Planning

  • Change: Estate & gift tax exemption increased to $15M per person (2026+).
  • Planning Tip: Review trusts, Roths, and taxable accounts to maximize wealth transfer.

7. Action Checklist for Retirees

☐ Reassess Social Security claiming age with lower taxable income
☐ Plan RMD withdrawals strategically around deductions
☐ Evaluate Roth conversions in 2025–2028
☐ Check MAGI to minimize IRMAA premiums
☐ Consider itemizing deductions if in high-tax state
☐ Update estate plan with new exemption limits
Location: Massachusetts, USA

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