Tax perks, bigger Roth opportunities, and legacy tools every retiree should understand.
Big news: The “Big Beautiful Bill” has officially passed—and for retirees and pre-retirees, it’s a game-changer.
This isn’t just a few tweaks to retirement law. It’s a sweeping update that rewards proactive planning, expands Roth access, and unlocks new opportunities to protect your income, reduce taxes, and preserve your legacy.
At Matthew James Tax & Wealth Management, we’ve spent months preparing for this moment. Now that it’s law, here’s what you need to know—and what to do next.
1. Roth Just Got More Powerful
The Big Beautiful Bill expands who can contribute to Roth accounts—and how much.
High-income earners can now make backdoor Roth contributions with fewer restrictions
SIMPLE and SEP plans now allow Roth-style contributions
Roth 401(k) matching is no longer pre-tax only—your match can grow tax-free too
Why it matters: Tax-free growth + no RMDs + tax-free inheritance = a win for both income and legacy planning.
2. RMD Age Has Been Raised [Again]
If you haven’t started taking Required Minimum Distributions (RMDs) yet, you may be in luck. The bill raises the RMD age to 76, giving retirees more years to:
Convert pre-tax assets to Roth at lower tax rates
Avoid IRMAA surcharges on Medicare
Reduce taxable estate value
Pro tip: More years without forced withdrawals means more flexibility to build a tax-efficient retirement income stream.
3. New Contribution Limits = More Room to Save
For retirees still working—or those helping children or grandchildren save—the Big Beautiful Bill introduces:
Increased catch-up contributions to IRAs and 401(k)s for those age 60+
A new “legacy match” program offering tax credits to those funding Roths for heirs
Expanded HSA contributions for retirees with qualifying plans
If you’re playing retirement catch-up, this is your moment to act.
4. Expanded Tax Credits for Family Caregivers
A quiet—but powerful—addition: the bill introduces a $5,000–$10,000 annual tax credit for those caring for an aging parent or spouse.
This directly offsets taxes owed—and acknowledges the rising costs retirees face while caregiving.
Why this matters: If you’re part of the “sandwich generation,” this could mean thousands in annual tax savings—plus strategic planning potential.
5. It’s a Big Win for Legacy Planning
Want to leave more behind for your loved ones? This bill lays the groundwork.
Expanded Roth flexibility
Estate tax exemption preservation
New trust-friendly rules for inherited Roths
This gives affluent retirees the opportunity to build a tax-free inheritance vehicle that benefits their heirs for decades to come.
What You Should Do Next
Now that the Big Beautiful Bill is law, it’s time to act—because waiting could cost you:
🔹 Revisit your Roth conversion strategy
🔹 Maximize 2025 contribution limits early
🔹 Rethink your withdrawal sequence
🔹 Create a tax-smart legacy plan before year-end
Final Word
Tax laws change. Your retirement goals don’t.
The Big Beautiful Bill opens the door to real, measurable gains—but only for those who seize the opportunity.
At Matthew James Tax & Wealth Management, we help retirees and near-retirees design strategic, tax-efficient plans that reflect the new rules—not the old ones.
Schedule a complimentary tax strategy call today and discover how the new law could reshape your retirement.
