Special distribution rules apply when a spouse dies naming his/her surviving spouse as the IRA’s designated beneficiary. A surviving spouse has options, especially so after the SECURE 2.0 Act. Note a rollover election is irrevocable. These new rules may not make much difference if the surviving spouse is close to his/her required beginning date, but for younger surviving spouses, these changes can make a big difference in when and how much required minimum distributions will have to be taken.

There are five documents that a child should sign before he or she goes off to college. Having a child sign these legal ‘tools’ will relieve some of that parental anxiety and probably also give the child (although he or she won’t admit it) some level of comfort that, if needed, Mom or Dad can get involved to help solve a problem.

The OBBBA make saving for retirement easier with more after-tax income available for those savings, thanks to new income tax deductions. However, converting a traditional IRA to a Roth IRA might be more challenging decision to make when the phase-out rules for these new deductions are considered.

Section 70114(a)(b) provides that starting in 2026 the definition of ‘losses from wagering transactions will include any allowable deduction tied to a wagering activity but limits deductions to 90% of the loss amount, capped by gambling winnings. Congress estimates that with this change in allowable deductions from gambling, $1.1 billion will be generated over the next 8 years.

Planning strategies for charitable deductions to optimize a donor’s tax benefits going forward will turn on if the individual itemizes his/her tax deductions, or does not itemize his/her tax deductions, keeping in mind that about 90% of individuals do not itemize their income tax deductions.

While cutting taxes for seniors is a good thing, it is not the same thing as eliminating taxes on Social Security, as claimed in the Social Security Administration’s recent letter to millions of recipients. Sadly, the SSA appears to have conflated two issues [a tax deduction and impact on Social Security] for political purposes (surprise, surprise) which in turn creates unrealistic expectations for many seniors who live on fixed incomes and rely on the government benefits for their existence.

The One Big Beautiful Bill Act (OBBBA) modestly expanded the scope of Health Savings Accounts.

When it comes to encouraging charitable giving, the One Big Beautiful Bill Act (OBBBA) is, at best,  a ‘mixed bag.

The phaseout provisions of the One Big Beautiful Bill Act (OBBBA) could lead to implicitly higher marginal income tax rates. As we know from prior experience, the Tax Code is full of hidden traps. The OBBBA has just added a few more traps, like ‘non-published’ marginal tax rates, triggered by its many new phaseout rules. Maybe folks should not work so hard to earn their bonuses if the result is that they are phased out of some of these helpful income tax deductions.

We are only just learning the pros and cons of a Trump Account, compared to a 529 account or some of the other tax-deferred savings rules in the Tax Code. Fortunately, the IRS has the better part of a year to come up with Proposed Regulations that will provide examples and also answer some of the lingering questions.