The 2026 tax season is officially underway, and for many retirees and pre-retirees, this year feels different. The reason? A new law known as the One Big Beautiful Bill Act (OBBBA), which introduced important tax changes starting with income earned in 2025.
At RetireWellDallas.com, we’re helping clients understand how these OBBBA tax changes impact their retirement income, Social Security taxation, Roth conversions, and long-term tax planning strategy.
Here’s what you need to know.
Understanding the New Senior Deduction Under OBBBA
One of the most discussed updates under OBBBA is a new senior tax deduction for individuals age 65 and older.
Despite media headlines, Social Security taxes were not eliminated. Instead, OBBBA introduced:
- An additional deduction of up to $6,000 per eligible individual
- Up to $12,000 for married couples if both spouses are 65 or older
- Available from 2025 through 2028
- Applies whether you take the standard deduction or itemize
- Phases out for incomes above:
- $75,000 (single filers)
- $150,000 (married filing jointly)
This deduction can significantly reduce taxable income in retirement, but eligibility and benefit amounts vary.
At Retire Well Dallas, we review:
- Whether you qualify
- How much could you benefit
- How does this fit into your overall retirement tax strategy
Short-Term Relief vs. Long-Term Tax Planning
While OBBBA prevented a major tax increase that was scheduled for 2026, long-term tax uncertainty remains. Federal debt levels, demographic shifts, and ongoing spending pressures could lead to higher tax rates in the future.
That’s why smart retirement tax planning isn’t just about this year’s refund.
We help clients focus on lifetime tax efficiency, including:
- Which accounts to withdraw from first
- Balancing taxable, tax-deferred, and tax-free assets
- Strategically using today’s potentially lower tax rates
- Building a flexible retirement income strategy
Looking beyond the current tax season can help protect more of your retirement savings over time.
Roth Conversions in 2026: A Strategic Opportunity
Under the new OBBBA rules, Roth conversions may offer powerful planning opportunities — but they require careful analysis.
Why consider a Roth conversion now?
- Today’s tax rates may be lower than future rates
- The new senior deduction may offset some conversion taxes
- You can potentially reduce long-term required minimum distributions (RMDs)
- You may reduce lifetime tax liability
However, conversions can also impact:
- Medicare IRMAA brackets
- Social Security taxation
- Future tax projections
That’s why we use specialized retirement planning software to model multiple scenarios and determine whether a Roth conversion strategy makes sense for your situation.
What You Should Do This Tax Season
To make the most of the 2026 tax season:
✔ Gather your 2025 tax documents early
✔ Inform us of any income, insurance, or retirement changes
✔ Request a tax-aware retirement income review
✔ Ask for a Roth conversion analysis before filing
Small proactive steps today can help prevent costly mistakes tomorrow.
Plan with Purpose, Not Just Numbers
Tax laws change. Markets change. But your retirement goals remain personal and long-term.
At RetireWellDallas.com, our focus is on helping you:
- Protect your retirement funds
- Reduce unnecessary taxes
- Create a purpose-driven retirement plan
- Make confident financial decisions
As a firm dedicated to serving a rapidly aging population, we stay ahead of legislative changes like OBBBA so you don’t have to.
Book Your Complimentary Strategy Session
If you have questions about:
- OBBBA tax changes
- The new senior deduction
- Social Security taxation
- Roth conversions
- Long-term retirement tax planning
Schedule a complimentary strategy session today:
👉 https://calendly.com/markgardnerprepostretirementtaxsaving-specialist-/60min
Make sure you’re not making a potentially irreversible and costly tax mistake.
Let’s make this tax season a strategic one — not just a filing deadline.
