President Donald Trump got his One Big Beautiful Bill passed. And now its up to wealth managers nationwide to disassemble it so their clients can understand its impact on their financial futures.
Why does the mammoth bill need to be broken down to be comprehended?
Because its a a mix of permanent changes and temporary provisions - and it is essential to understand which is which.
Nathan Fulkman, senior financial advisor at MFA Wealth and Aquinas Wealth Advisors, believes one of the most important points wealth managers need to communicate to clients is that, while the individual tax brackets and the higher standard deduction have been made permanent extensions of the 2017 tax reform, many of the most talked-about benefits - such as the exclusion of the first $25,000 in tip income, the expanded child tax credit, bonus depreciation, and the new ‘Trump Accounts’ - are only temporary and are scheduled to sunset by 2028 or 2030.
Fulkman adds that homeowners in high-tax states should also know that the State and Local Tax (SALT) deduction cap has been expanded from $10,000 to as much as $40,000, potentially reducing their federal tax liability. However, he points out that this only helps if they itemize deductions, which many households no longer do because of the larger standard deduction.
Business owners also stand to benefit from several key provisions in the bill, according to Fulkman. Full expensing for research and development costs and qualified equipment purchases has been reinstated, allowing companies to immediately deduct the entire cost of these investments. At the same time, the 20% pass-through income deduction under Section 199A is now permanent, offering ongoing tax relief for many small businesses.
“Since some of these accelerated deductions will phase out in the coming years, it may make sense for clients to consider moving up planned purchases or investments to take advantage of these incentives while they last,” Fulkman said.
“Many clients are already asking whether they should convert retirement savings to Roth accounts right now, whether they’ll lose deductions if they wait, or whether this is the right moment to retire or sell a business. The truth is that there is no one-size-fits-all answer. Advisors need to model specific scenarios based on each household’s income, location, retirement timeline, and estate planning goals,” Fulkman said.
Similarly, Dave Alison, president and founding partner at Prosperity Capital Advisors, said the most important message for clients is that the TCJA tax cuts are now permanent, removing the 2026 cliff that's been hanging over tax planning for years.
“This certainty allows for more confident long-term planning, but 'permanent' in tax law simply means there's no automatic expiration date – Congress can always make changes,” Alison said.
When it comes to questions regarding the Big Beautiful Bill, Alison said he’s been repeatedly asked by clients whether they need to rush to make moves. His response? Yes and no.
“There are critical deadlines clients must understand: All electric vehicle credits expire September 30, 2025 – that's less than 3 months away. Residential energy credits expire December 31, 2025. But for most other provisions, clients have time to plan strategically,” Alison said.
He has also been asked many times about the impact of phase-outs.
“The enhanced SALT deduction, $40,000 cap, phases out between $500K-$600K MAGI, creating an effective 45.5% marginal tax rate in that range. Many temporary benefits like tips, overtime, senior deduction, also have phase-outs that require careful income planning,” Alison said.
Finally, when it comes to estate planning, Alison has been explaining to clients that the $15 million per-person exemption is permanent, but clients need to understand the trade-off: lifetime gifts lose the step-up in basis at death.
“With 'permanent' high exemptions, the calculus has changed – rushing to make large gifts may not be optimal,” Alison said.
Fulkman said clients are “understandably confused” about Social Security taxes. He noted that a common misconception is that the bill eliminates taxes on Social Security benefits altogether.
“In reality, it introduces a temporary deduction - $6,000 for individuals and $12,000 for couples over 65 with income under certain thresholds—which is very different from a full repeal,” Fulkman said.
Meanwhile, Prosperity’s Alison said the most common misconceptions are that “everything is permanent,” and that “Trump Accounts are like 529s, even though they are actually structured as traditional IRAs with very different tax treatment.
“The bill creates significant opportunities, but success requires proactive planning, not reactive scrambling. The advisors who will add the most value are those who can navigate this complexity and create integrated strategies that maximize benefits while maintaining flexibility for future changes," Alison said.
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