My mom never wasted a thing. If she found a mystery casserole in the freezer and said, “We got to use this up,” we knew dinner was about to be something that looked like leftovers from the Cold War.
When it comes to tax breaks, I’m with my mom – we got to use this up!
The new “Big Beautiful Bill” gives anyone over 65 an extra $6,000 annual deduction – whether you itemize or not. For a married couple, that’s at least $46,500 of tax-free income each year! But here’s the catch: it only lasts 4 years, from 2025-2028. After that, it’s gone.
So, how do you make the most of it? Here are two great tax strategies:
Roth Conversions
Shifting IRA money into a Roth means paying taxes now, and enjoying tax-free growth and withdrawals later. Here’s why it matters:
- It reduces your future Required Minimum Distributions.
- It may keep you in a lower tax bracket down the road.
- It could save you from higher Medicare premiums in the future.
- Lets your heirs stretch their tax-free inheritance for another decade – this is huge!
And why not do everything we can to disinherit the IRS?
Reduce You Portfolio Risk.
Since Jan 1, 2020, the S&P 500 has doubled.(1) Selling winners is hard when taxes loom—but this extra deduction gives you cover. Rebalancing your portfolio now may protect gains and help you sleep better when the next downturn hits.
Curious what this could mean for your situation? Call me—I love a good tax puzzle.
Plan Well,
Barbara
August 18, 2025
1. https://www.macrotrends.net/2324/sp-500-historical-chart-data
Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.