Here is a quick look at the highlights of the One Big Beautiful Bill (Tax Bill) currently going through congress. I have included some high level bullet points for a quick read but would encourage you to read the original article from the Tax Foundations – https://taxfoundation.org/blog/one-big-beautiful-bill-pros-cons/

As many of you know, I try to keep tax policy analysis as simple as possible — and relevant to real life. The latest tax proposal moving through Congress, dubbed the “One Big Beautiful Bill,” has a little bit of everything: some helpful simplifications, a few short-term giveaways, and unfortunately, a decent dose of complexity.

So how might this proposed tax bill affect you — my clients here in Iowa, especially those nearing or in retirement? Let’s take a practical look.

The Good: Long-Term Clarity and Some Real Benefits

• Standard Deduction Made Permanent:
  The higher standard deduction, originally part of the 2017 tax changes, is here to stay. This simplifies filing and lowers taxable income for most retirees — especially those without large itemized deductions.
• Senior Deduction Bonus:
  The bill adds a new extra deduction just for seniors. If you’re over 65, this could reduce your taxable income even further.
• Estate Tax Simplification:
  The estate and gift tax exemption would rise to $15 million (adjusted for inflation) starting in 2026. That’s great news for families with significant assets, especially those passing on farms or businesses.
• Pass-Through Income Deduction Increased:
  If you have rental income, farmland, or a side business, the deduction for that income (called pass-through income) would increase from 20% to 23% — a small but meaningful tax cut for many Iowans with non-W-2 income.

The “We’ll See” Provisions

• Temporary Tax Breaks (2025–2029):
  There’s a short-term exemption from taxes on overtime pay, tips, and auto loan interest, plus an additional deduction for all seniors. These may benefit younger family members more than retirees, but they’re worth watching.
• Higher Cap on SALT Deductions:
  The deduction limit for state and local taxes would rise from $10,000 to $30,000 for married couples. In a lower-tax state like Iowa, most people won’t hit this cap, but a few higher-income households could see a small benefit.
• HSA and Education Account Changes:
  The bill expands contributions for HSAs, 529s, and similar accounts. If you’re still eligible to contribute, this may be helpful — though many retirees won’t qualify due to Medicare enrollment.

The Not-So-Good: Complexity and Missed Opportunities

• Lots of New Rules, Not Much Simplicity:
  New tax breaks for tips, car loans, and baby bonuses come with strings attached. These provisions could take hundreds of pages of IRS guidance to untangle — not exactly retirement-friendly.
• MAGA Accounts & Baby Bonuses:
  A new savings vehicle for children born in the next four years adds a $1,000 government bonus and allows tax-deferred contributions. While interesting, it’s not nearly as flexible as existing tools like Roth IRAs or 529s — and adds more accounts to track.
• Pass-Through Advantage Over Corporations Grows:
  By increasing the pass-through deduction, the bill widens the gap between business types — favoring sole proprietors and LLCs over traditional corporations. This could skew business decisions for some.
• Missed Chance for Long-Term Growth:
  While the bill brings back a few pro-growth ideas for a few years (like bonus depreciation and R&D expensing), they’re not permanent. For business owners or farmers looking to invest long-term, that’s a missed opportunity.

What You Should Consider Now

Here’s what I recommend for clients trying to make sense of it all:

• Revisit Your Asset Location
  If tax rates rise in the future — and they may — you’ll want to have flexibility. Roth conversions, tax-diversified accounts, and thoughtful income planning will matter more than ever.
• Talk With Family About Gifting Strategies
  Some of the new provisions (like MAGA accounts) might not affect you directly, but they could become part of your legacy or gifting plan.
• Simplify Where You Can
  Tax law is only going to get more complex. Now’s the time to simplify your plan — not add unnecessary layers.

If you have questions or want to look at how this proposed bill could affect your retirement or estate strategy, don’t hesitate to reach out. I’ll be watching this legislation closely, and we will adjust accordingly if it becomes law.

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Philip Lockwood | Founder + Managing Partner

Address: 1501 Ingersoll Ave. Suite 201  Des Moines, IA 50309 Phone: 515-274-8006

Email: Plockwood@parklandrep.com Website: Lockwood Financial Strategies  Securities offered through Parkland Securities, LLC, member FINRA (FINRA.org) and SIPC (SIPC.org). Investment Advisory services offered through SPC, a Registered Investment Advisor. Lockwood Financial Strategies, LLC is independent of Parkland Securities, LLC and SPC Securities offered through Parkland Securities, LLC, member FINRA/SIPC.