5 reasons to revisit your financial plan thanks to the OBBBA

Your financial playbook may have just changed. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, introduced sweeping updates to the tax code, deductions and retirement benefits that reach nearly every household and business.

Due to the breadth of these changes, the OBBA is one of the biggest shifts to the tax code in a decade and the choices you make now could set the tone for years to come, said Chrisanna Elser, especialista en control de calidad de planificación financiera en BOK Financial®.

Here are the top five reasons it’s time to revisit your financial plan right away.

1. Significant tax code changes
The OBBBA makes many of the 2017 tax cuts permanent, including lower income tax brackets and a higher standard deduction. This higher standard deduction means that more of your income will continue to be shielded from federal income impuestos. Here’s how the standard deduction breaks down:

• Single filers (or married individuals filing separately): $15,750
• Heads of household: $23,625
• Married couples filing jointly (or qualifying surviving spouses): $31,500

“These amounts are slightly higher than previous thresholds and will continue to be adjusted for inflation in future years,” said Elser.

It also introduces zero federal income tax on tips and overtime pay (with some limitations), which could affect both your take-home income and your tax withholding strategy.

2. SALT deduction cap temporarily raised
The act raises the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 beginning in 2025 for households earning under $500,000. This is a significant benefit for taxpayers in high-tax states who itemize deductions. However, the cap phases out for higher earners and is scheduled to revert in 2030, making this a time-sensitive planning opportunity.

"High-income households need to think of this as a window of opportunity rather than a permanent benefit. Using the next few years wisely could mean thousands of dollars in tax savings," said Elser.

3. Universal charitable deduction returns
For the first time since the pandemic-era relief bills, non-itemizers can now deduct charitable contributions-up to $1,000 for individuals and $2,000 for married couples filing jointly. This above-the-line deduction reduces adjusted gross income (AGI), making charitable giving more accessible and tax-efficient.

"This levels the playing field for everyday givers," explained Elser. "Eligible charitable contributions can include churches and religious organizations, 501(c)3 charities, private foundations, political organizations and other nonprofits.”

4. Charitable planning and retirement adjustments
When you donate to qualified charities, the IRS sets a limit on how much of your AGI you can deduct in a single year. Previously, you could deduct up to 60% of your annual income through cash gifts to eligible charities, but that limit was set to expire. The new law makes that 60% limit permanent, which means if you earn $100,000 in a year, you could deduct as much as $60,000 worth of charitable donations from your taxes.

"This changes the way retirees should think about blending charitable giving with retirement income strategies," explained Elser. "It creates opportunities for tax savings while supporting philanthropy."

If you're 65 or older you can claim an additional deduction of $6,000 ($12,000 for married couples). This new deduction is in addition to the standard deduction.

These updates may influence how you approach giving and retirement income planning, especially if you’re nearing or already in retirement.

5. Medicare premium deductions for the self-employed
Self-employed individuals can now deduct Medicare Part B, Part D, Advantage and supplemental premiums, even if they take the standard deduction. This change provides meaningful relief for solo business owners and retirees without access to employer-sponsored health plans.

According to Elser, this is a long-awaited win for freelancers, consultants and small business owners. Healthcare costs can be a major burden, and being able to deduct them directly helps non-traditional earners.

The OBBBA is one of the most comprehensive financial overhauls in recent history.

As always, consult with a financial planner or tax advisor to understand how these changes apply to your unique situation. With proactive planning, you can maximize the benefits of the OBBBA while safeguarding your long-term financial health.