How the 2025 Tax Law Impacts Retirement, Healthcare, and Small Business Owners
In mid-2025, Congress passed the One Big Beautiful Bill (OBBB) — one of the most sweeping legislative acts in decades. While it touches everything from defense spending to healthcare, it also introduces major financial and tax updates that affect retirees, investors, and small business owners.
Key Provisions You Should Know
1. Higher Standard Deduction
The OBBB keeps the elevated deductions introduced in 2017, now adjusted for inflation — $15,750 for single filers and $31,500 for married couples filing jointly.
2. Expanded SALT Deduction
The cap on state and local tax (SALT) deductions jumps from $10,000 to $40,000, offering significant relief for homeowners in higher-tax states.
3. Senior Bonus Deduction
Taxpayers age 65+ can now claim an additional $6,000 deduction, helping offset fixed-income challenges.
4. New HSA Access for More Americans
Starting in 2026, anyone with a Bronze or Catastrophic ACA health plan can open a Health Savings Account — a triple-tax-advantaged way to save for healthcare expenses.
5. Charitable Deductions for Standard Filers
Even if you don’t itemize, you can now deduct up to $1,000 (single) or $2,000 (joint) in charitable donations.
6. Business Owner Benefits
Small business owners benefit from expanded pass-through deductions, plus bonus depreciation and full expensing for qualified assets — encouraging reinvestment and growth.
How This Impacts Retirement and Estate Planning
For retirees, the OBBB reinforces the value of integrated tax and estate strategies. The expanded deductions and new savings vehicles can:
- Increase after-tax income during retirement.
- Enhance healthcare affordability through HSAs.
- Boost charitable giving and legacy impact.
For small business owners nearing retirement, these provisions can be leveraged to reduce taxable income and fund buy-sell or succession plans efficiently.
What You Should Do Now
- Schedule a Tax and Estate Review: Ensure your retirement, charitable, and healthcare strategies align with the new rules.
- Revisit Your Charitable Plan: The new deduction makes even modest giving more tax-efficient.
- Explore HSA Opportunities: If you’re eligible, start planning contributions now for 2026.
- Integrate Your Business and Estate Planning: Use new deductions to support business succession or wealth transfer goals.
Your Partner in Planning
Alperin Law & Wealth integrates legal, tax, financial, and life planning into a single, cohesive strategy. Our attorneys and advisors can help you identify opportunities under the new law to minimize taxes, maximize savings, and strengthen your overall financial legacy.
Expert Insight: Laws change — but proactive planning always pays off. Let’s make sure your plan is designed to take advantage of every opportunity.