Expert breaks down the 2025 tax changes retirees should know

Core Insights - The One Big Beautiful Bill Act (OBBBA) significantly alters the tax landscape for retirees starting in 2025, impacting state and local tax deductions, Roth conversion strategies, and estate planning [1][2] Tax Changes and Strategies - Tax expert Bob Keebler emphasizes that while some changes present opportunities, others could lead to substantial costs for retirees if not managed properly [2] - The SALT (state and local tax) deduction cap increases from $10,000 to $40,000 under the OBBBA, necessitating careful planning to optimize tax benefits [3][4] - A phaseout for higher earners begins at an adjusted gross income (AGI) of $500,000, reducing the SALT cap back to $10,000 at $600,000, which can lead to a significant loss in deductions [4][5] - Keebler advises retirees to consider a bunching strategy for itemized deductions, as the standard deduction is projected to rise to approximately $32,200 for married couples in 2026 [5]