What the One Big Beautiful Bill Act Could Mean for Your Retirement Planning

A new bill making headlines in Washington could soon reshape retirement and financial planning for millions of Americans. The One Big Beautiful Bill Act (OBBBA)—recently passed by the House—proposes sweeping updates to tax policy, savings accounts, and retirement benefits. While the bill still requires Senate approval and may undergo revisions, now is a good time to understand its potential impact.

In this blog, JTM Williams Capital Management will discuss the key highlights of The One Big Beautiful Bill Act (OBBBA) . 

Tax Law Changes That May Impact Retirement Planning

If enacted, the OBBBA would lock in several provisions of the 2017 Tax Cuts and Jobs Act, including:

• Permanent Lower Income Tax Rates: The reduced tax brackets and increased standard deduction would remain in place.

• Estate Tax Exemption: The exemption would stay at $15 million, preserving favorable conditions for wealth transfer.

• New Senior Deduction: A $4,000 deduction would become available to individuals aged 65+ earning less than $75,000 (single) or $150,000 (married).

Retirement Planning Updates: Expanded HSA Contributions and Benefits

Healthcare savings would get a boost under this bill:

• Medicare + HSA Contributions: Workers on Medicare Part A with high-deductible health plans could continue contributing to HSAs.

• Higher Contribution Limits: Individuals could contribute up to $8,600, and couples up to $17,100.

• Expanded Eligible Expenses: Gym memberships and fitness programs would qualify as allowable HSA expenses—encouraging healthy living in retirement.

Education Savings Enhancements for Multi-Generational Planning

Retirees and families helping the next generation may find added support:

• More Flexible 529 Plans: These accounts could now be used for tutoring, testing fees, and credential programs—perfect for grandparents supporting education or adults pursuing new skills.

• Boosted ABLE Accounts: Enhanced tax benefits would be available for people with disabilities.

• New “Trump Accounts” for Children: A government-seeded savings vehicle to support a child’s future needs—whether for education, caregiving, or other long-term goals.

Federal Retirement Benefits May Shift in 2028

Significant updates are proposed for federal employees:

• FERS Supplement Eliminated (2028): New retirees under the Federal Employees Retirement System may no longer receive the annuity supplement.

• Two-Tier Pension System: Future employees could choose between higher contributions with job protections or lower contributions with fewer guarantees.

Key Retirement Plan Changes in 2025 and 2026

The OBBBA includes other important retirement savings shifts:

• Bigger Catch-Up Contributions: Starting in 2025, individuals aged 60–63 could make larger catch-up contributions.

• 401(k) Auto-Enrollment: New plans would be required to automatically enroll participants.

• Roth Requirements for High Earners: Beginning in 2026, high-income earners making catch-up contributions would be required to make them as Roth contributions.

What to Watch: Retirement Planning in a Changing Policy Landscape

While the One Big Beautiful Bill Act promises more flexibility in how Americans save and plan—especially in healthcare and education—it also introduces new rules that could complicate retirement for federal workers and higher earners.

The key takeaway? Stay informed and proactive. As the bill makes its way through the Senate, changes are likely. Now is the perfect time to review your retirement strategy and make sure it aligns with the latest policy developments.

Retirement Planning with JTM

Need help navigating these potential changes? Our retirement savings and income planning in Alexandria, VA, and Bridgeport, WV, help you navigate the complexities of retirement planning. 

All of our retirement saving planning services are tailored to you, your family, your business, your lifestyle, and your goals. Our services include:

• Financial strategy

• Retirement saving and income planning

• Risk management and insurance planning

• Tax and estate planning

• Investment strategy

• Succession planning

• And more.

Reach out to JTM today for a personalized conversation to explore how these updates could affect your financial future.