As we’re sure you’ve heard, in July 2025, Congress passed what’s being called the One Big Beautiful Bill Act — or OBBBA for short.
At nearly 1,000 pages, this legislation makes permanent some of the most sweeping tax changes in decades, cementing many of the provisions from the 2017 Tax Cuts and Jobs Act (TCJA).
For investors, business owners, and families, the OBBBA represents a fundamental shift in how income, estates, and wealth will be taxed moving forward. Lower marginal brackets are no longer set to expire in 2026, the estate tax exemption will not be cut in half, and several key provisions that were once viewed as “temporary” are now considered permanent.
Why does this matter? Because taxes don’t just affect what you pay this year — they shape your long-term financial strategy, your retirement income planning, and ultimately, the legacy you leave behind. Understanding what changed, what didn’t, and how to align your strategy with this new law is critical.
At Towerpoint Wealth, we believe tax legislation should never be viewed in isolation. The OBBBA is not simply about numbers on a page; it’s about what those numbers mean for you, your goals, and your family’s future.
In this article, we’ll walk through the provisions of the One Big Beautiful Bill Act, explore how it may affect your planning, and share key strategies to make the most of this historic tax shift.
Key Takeaways
- The One Big Beautiful Bill Act passed, making the lower tax brackets from the 2017 reform permanent and shifting planning from “temporary” assumptions to lasting strategies.
- The permanent extension of 2017 tax cuts impacts income timing, Roth IRA conversions, charitable giving, and estate planning.
- Not every rule carried over — some deductions and provisions from the TCJA expiration remain unchanged, keeping planning complexity in place.
- “Permanent” doesn’t mean unchangeable — Congress and states can still adjust tax laws, so proactive and flexible planning is essential.
What is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act — often shortened to OBBBA — is one of the most significant pieces of tax legislation in decades. Signed into law in July 2025, the Act takes the 2017 Tax Cuts and Jobs Act (TCJA) and makes many of its most impactful provisions permanent.
For years, taxpayers and advisors alike were bracing for 2026, when much of the TCJA was set to “sunset.” That meant higher marginal tax brackets, a lower estate tax exemption, and the potential for a much heavier tax burden across income levels.
The OBBBA eliminates that uncertainty by locking in a number of key provisions, including:
- Permanent extension of lower income tax brackets that were originally scheduled to expire in 2026.
- Continuation of the higher estate and gift tax exemption — removing the looming cut in half that many families were planning around.
- Retention of certain business deductions and credits, helping entrepreneurs and business owners maintain favorable tax treatment.
- Longer-term clarity for retirement and investment planning, since conversions, withdrawals, and other income strategies can now be evaluated under a more stable tax framework.
While the Act is sweeping in scope, it does not change every element of the tax code. Certain limitations and rules remain in place, and the practical impact will vary depending on your income, assets, and family situation.
For individuals and families, the OBBBA represents both relief and opportunity. Relief, because we no longer face the uncertainty of an automatic tax hike in 2026. Opportunity, because proactive planning today can help you make the most of these “locked-in” provisions for decades to come.
Key Provisions of the OBBBA Explained
The One Big Beautiful Bill Act is sweeping in scope, but there are a handful of provisions that will matter most for families, retirees, and investors. Here are the areas we believe are most critical to understand:
Income Tax Brackets Made Permanent
Perhaps the most widely felt provision is the permanent extension of the 2017 Tax Cuts and Jobs Act’s lower income tax brackets. Without the OBBBA, many taxpayers would have seen higher marginal rates beginning in 2026. This permanence means individuals and families can plan with more confidence, knowing that today’s brackets will not automatically expire.
Estate and Gift Tax Exemption
The estate and gift tax exemption, which was scheduled to be cut nearly in half in 2026, will remain at its historically high level. For high-net-worth families, this is significant: more wealth can be transferred free of federal estate tax, offering greater flexibility for legacy and gifting strategies.
Business and Small Business Provisions
The Act retains a number of business-friendly deductions and credits, including the 20% Qualified Business Income (QBI) deduction for pass-through entities. For entrepreneurs and business owners, this translates to continued tax relief and stronger cash flow — provided the business is structured appropriately.
Retirement and Investment Planning Effects
With lower tax rates now locked in, strategies like Roth IRA conversions, 401(k) distribution planning, and capital gains harvesting can be pursued with greater certainty. Investors now have the ability to build multi-year tax strategies without the looming threat of a 2026 tax hike.
Child Tax Credit and Other Family Benefits
The OBBBA also makes permanent several family-centered tax breaks, including an expanded Child Tax Credit and adjustments to standard deductions. These changes provide stability for families managing household budgets and planning for education, healthcare, and other long-term needs.
Why It Matters
Taken together, these provisions provide both stability and opportunity. Stability, because taxpayers now have a more stable tax framework to plan against. Opportunity, because families and investors who act strategically today can maximize tax savings, preserve wealth, and build a legacy under rules designed to last.
Planning Smarter Under the Permanent Tax Cuts
The passage of the One Big Beautiful Bill Act (OBBBA) has extended tax breaks and potentially reshaped the foundation of financial planning. What were once temporary measures under the 2017 Tax Cuts and Jobs Act (TCJA) are now permanent.
This permanence affects tax strategy, shifting the conversation from “how do we take advantage before the TCJA expiration in 2026?” to “how do we plan effectively for the long run?”
Income Tax Planning
For high-income households and retirees, the permanent extension of the 2017 tax cuts provides clarity on marginal brackets. This means that strategies such as Roth IRA conversions and the timing of distributions from retirement accounts can be approached with greater confidence.
For example, a couple in the 24% bracket no longer needs to worry about being automatically pushed back into a higher bracket in 2026. That stability allows for multi-year conversion planning — spreading taxable income across years without the looming deadline of higher rates.
Capital Gains Harvesting
Lower brackets also create opportunities for thoughtful capital gains harvesting. Selling appreciated assets in years with lower income can now be done more predictably. Under the preserved tax provisions, retirees in early retirement years may strategically sell investments while remaining within the 15% capital gains bracket.
With TCJA provisions now permanent, this can become a regular, disciplined component of long-term tax planning rather than a race against an expiration date.
Estate Planning Strategies
One of the most significant implications of this Act is for estate planning. The estate and gift tax exemption — once set to be cut nearly in half with the TCJA expiration — will now remain historically high. For high-net-worth families, this means greater ability to transfer wealth tax-efficiently.
Whether through outright gifts, funding irrevocable trusts, or leveraging advanced strategies like spousal lifetime access trusts (SLATs), permanence allows for more intentional, coordinated planning without the fear of rapidly changing thresholds.
Why Permanence Matters
The difference between temporary and permanent provisions cannot be overstated. Temporary rules force rushed decisions and reactive moves. Permanent rules allow for deliberate, long-term strategies that can be revisited, adjusted, and optimized over time.
At Towerpoint Wealth, we see this shift as an opportunity for clients to build smarter tax strategies — not in response to deadlines, but aligned with their unique financial goals, retirement timelines, and legacy objectives.
What Still Requires A Close Eye Under the OBBBA
The new law changes the landscape in meaningful ways, but good planning remains essential. Even with clearer rules, your outcomes still depend on how your financial life is coordinated across taxes, investments, retirement income, and estate strategy. Here’s what to keep in focus:
- State vs. federal rules: States don’t always conform to federal changes on the same timeline, and some never fully conform. That means your state tax picture may differ from your federal one. Coordinate projections at both levels.
- Implementation details: New legislation often requires agency guidance and updated forms before the mechanics are settled. Until that’s published, build plans with ranges and revisit as guidance arrives.
- Bracket and cash-flow management: “Permanent” rates still reward timing. Multi-year income planning (e.g., when to realize income, harvest gains, or convert to Roth) remains a core strategy for reducing lifetime taxes.
- Coordination across professionals: The biggest wins usually come from aligning your CPA, estate attorney, and fiduciary advisor, so the legal documents, account titling/beneficiaries, and tax moves all work together.
- Life changes beat law changes: Marriage, divorce, business sales, retirements, liquidity events, and inheritances will have a larger impact on your plan than any single statute. Review after major life events and on a regular cadence.
The statute sets the rules; planning determines your result. Smart investors can use the clarity we have now to build a flexible, multi-year strategy that can adapt as guidance, states, markets, and your life evolve.
Planning in the One Big Beautiful Bill Act Era
The One Big Beautiful Bill Act has changed the tax landscape in a major way. By making the lower brackets from the 2017 tax reform permanent, it has created opportunities for families, investors, and retirees to plan with more confidence. But permanence doesn’t mean simplicity — and it definitely doesn’t mean investors can “set it and forget it.”
For households at every level, this shift affects how you approach income planning, Roth conversions, charitable giving, and estate strategies:
- High-income earners may find themselves with more room for tax-efficient conversions.
- Retirees may rethink their withdrawal strategies to better align with these lasting brackets.
- Families focused on legacy planning now need to coordinate more carefully with advisors, attorneys, and CPAs to ensure their plan reflects today’s rules while staying flexible for tomorrow’s changes.
The reality is that tax law is never truly “finished.” Even with the permanent extension of the 2017 tax cuts, Congress can always revisit the code, and states often add another layer of complexity. What’s permanent today may still shift in the future. That’s why thoughtful, ongoing financial planning remains so important.
At Towerpoint Wealth, our goal is to help clients build and protect wealth across generations, with strategies that adapt as tax law and life circumstances evolve. The One Big Beautiful Bill provisions offer a unique window to strengthen your financial plan — but the right approach depends on your individual goals, income, and long-term vision.
If you’re wondering how this new law impacts your retirement, investment, or estate planning strategy, now is the time to get clarity.
We invite you to schedule a complimentary 20-minute “Ask Anything” conversation with our fiduciary team. We’ll walk through your current plan, highlight opportunities in light of today’s tax rules, and help you ensure your wealth strategy is built to last.
