Analyzing the Individual Tax Provisions of the House Republicans’ 2025 Proposed Tax Bill
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend Reading
A new GOP tax proposal could bring changes to how you are taxed—offering potential savings, but also new planning challenges.
READ THE ARTICLEHouse Republicans have unveiled a sweeping proposal aimed at extending and expanding the 2017 Tax Cuts and Jobs Act (TCJA), and while still in draft form, this proposed legislation reveals the potential direction of future tax policy and planning opportunities that may follow.
Here’s What You Need to Know:
📌 Standard deductions would be made permanent, with a temporary boost and extra $4,000 bonus for those age 65+
📌 The $10,000 cap on State and Local Tax (SALT) deductions would rise to $30,000, but taper down again for high earners
📌 Qualified Business Income deductions (QBI) could increase from 20% to 23%, benefitting retirees still earning income through consulting or part-time work
📌 New deductions for tip, overtime, auto loan interest, expanded 529 uses, and doubled HSA limits suggest an effort to appeal to savers and workers alike
📌 A new Money Account for Growth and Advancement (“MAGA account”) is a government-funded savings account for newborns and adds an intriguing long-term savings measure
Does your tax strategy need a checkup? If you have questions or concerns about how future tax laws could impact your retirement savings, now is a good time to revisit your plan and ensure you're prepared for what’s ahead.