Highlights of the One Big Beautiful Bill Act Signed into Law July 4, 2025
The One Big Beautiful Bill Act (OBBBA) was signed into law by President Trump on July 4, 2025. Here are some highlights that may impact your insurance and retirement planning:
What's in the Bill?
- Taxes: Keeps 2017 tax cuts, raises the standard deduction ($15,750 singles / $31,500 couples in 2025), and increases the state/local tax deduction cap to $40,000 for incomes under $500,000.
- Child Tax Credit: Boosted to $2,200 per child.
- Senior Bonus Deduction: Seniors 65+ can deduct up to $6,000 (single) or $12,000 (couples) from taxable income in addition to the standard deduction — available 2025–2028 for incomes up to $75,000/$150,000.
- Spending: Adds $150B for defense and $170B for border security. Reduces Medicaid by up to $1 trillion with new work requirements.
- "Trump Accounts": Tax-deferred accounts for children born 2024–2028 with a $1,000 federal deposit.
Social Security Changes
The OBBBA doesn't eliminate taxes on Social Security benefits but offers a temporary "senior bonus" deduction. For example, a single senior with $30,000 in Social Security and $20,000 in other income could use the $15,750 standard deduction plus $6,000 senior bonus to significantly lower or eliminate taxes on benefits. This benefit is temporary through 2028 and phases out at higher incomes.
Contact us if you have any specific questions about how this bill may impact your insurance and retirement planning.
$2.2 Trillion CARES Act — What You Need to Know
On March 27th, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) providing financial relief for the economic downturn caused by the COVID-19 pandemic. Key highlights include:
- Stimulus payments: $1,200 per adult ($2,400 married) + $500 per child for incomes up to $75,000/$150,000.
- Retirement distributions: Up to $100,000 in COVID-related distributions without the 10% early withdrawal penalty, with income spread over three years.
- RMD suspension: Required Minimum Distributions for 2020 were suspended.
- Enhanced unemployment: Additional $600/week for up to four months, plus 13 additional weeks of benefits.
- Plan loan limit increase: Maximum loan from retirement plans increased from $50,000 to $100,000 through December 31, 2020.
9 Myths Investors Believe About Retirement
Investors tend to have expectations in retirement that may be unrealistic. According to The Wall Street Journal, these 9 myths — if they don't come true — can cause a retirement plan to fall apart:
- "I'm going to work in retirement."
- "My home is my safety net."
- "I can live on 70% or 80% of my pre-retirement income."
- "My taxes will go down in retirement."
- "I'm comfortable with debt."
- "My spouse is taking care of everything."
- "I'm going to get an inheritance."
- "I'm going to get a pension — and it's safe."
- "I won't need long-term care."
It is our job and fiduciary duty at The Legacy Council to analyze our clients' real needs and show them a realistic plan. Call us at (513) 442-2000 for your complimentary retirement analysis today!
How Does a 401k Rollover Work and What Are My Options?
A "rollover" is a term for transferring tax-deferred retirement savings like a 401k or pension from one account to another. You do not have to be held captive by your 401k or pension fund. If you are 59½ or have left your employer, you owe it to yourself to look into your rollover options.
We can help rollover your 401k or company pension to help you enjoy portfolio growth with zero downside risk, implement a smart retirement income solution with income you can't outlive, and maximize your retirement paycheck.
How to Complete a Rollover in 4 Steps:
- Gather your latest statement — shows your current balance and contributions.
- Decide what to roll it into — contact TLC to explore options like a fixed index annuity.
- Set up a new account — we assist with all paperwork.
- Initiate the rollover — specify a direct transfer to avoid IRS penalties.
Call the Retirement Advisors at The Legacy Council today at (513) 442-2000.
A Big Change to Social Security in 2016
The 2016 budget bill eliminated the popular "File and Suspend" Social Security strategy after May 1, 2016. This strategy allowed the spouse who reached full retirement age to file and immediately suspend benefits, while their partner claimed a spousal benefit and the deferred benefit grew 8% per year until age 70.
If you have any questions about your Social Security filing options, call the experts at The Legacy Council at (513) 442-2000.
What You Need to Know About the Medicare Open Enrollment Period
The Medicare Annual Election Period (AEP) runs from October 15th to December 7th each year. This is when you can review and change your Medicare Advantage or Prescription Drug plan. Key items to review in your Annual Notice of Changes (ANOC):
- Monthly Premium
- Deductibles & Copays
- Prescription Drug Costs & Formulary
- Provider Network
Contact your local brokers at The Legacy Council to help navigate all the plans and information. We represent most major carriers and can provide a non-biased consultation. Call us at (513) 442-2000.
5 Facts Most People Don't Know About Social Security
- Your full retirement age depends on your birth year — age 66 if born 1943–1954, age 67 if born 1960 or later.
- Every year you delay collecting Social Security increases your benefit by ~8% per year up to age 70.
- If your spouse dies, you receive the greater of the two benefits, not both.
- You can work and collect Social Security, but if you haven't reached full retirement age, earnings above the retirement earnings test limit may reduce your benefits.
- Your spouse can qualify for a Social Security Spousal Benefit of up to 50% of your full retirement age benefit, even with no earnings history.
For help planning your Social Security strategy, contact The Legacy Council at (513) 442-2000.
Do You Lie Awake at Night?
Do you have money in the stock market and worry whether it will go up or down? The Legacy Council offers financial products that allow your principal to never decrease in a market decline but will gain interest when the market goes up. Interest is tax-deferred, and when it's time to retire, these products can create a GUARANTEED LIFETIME INCOME you can never outlive.
Knowing you will never outlive your money in retirement — that is "Peace of Mind." Give us a call at (513) 442-2000 for details.
Retirement Planning Using Life Insurance
One type of life insurance growing in popularity for retirement planning is the Indexed Universal Life (IUL) policy. An IUL provides an immediate death benefit while also allowing you to "overfund" the policy, building cash value that grows tax-free based on a stock index (like the S&P 500) — without ever being directly invested in the market.
Once sufficient cash value has accumulated, the policy owner can take tax-free Policy Loans to create a stream of income in retirement. Contact one of the Licensed Experts at The Legacy Council at (513) 442-2000 to learn more.