The tax landscape has shifted dramatically in recent years, leaving many individuals and business owners unsure about how new laws may impact their financial plans. With significant updates stemming from the One Big Beautiful Bill Act (OBBBA), the Tax Cuts and Jobs Act (TCJA) extensions, and both SECURE Act 1.0 and 2.0, it’s more important than ever to understand how these changes affect income planning, retirement strategies, and long-term wealth transfer.
To help unpack these complex changes, we spoke with Kevin Jenkins, CPA, of Jenkins & Associates Certified Public Accountants, a Clear Lake–area firm founded by his father in 1988 that has been helping clients with tax and accounting needs for more than 30 years.
What the OBBBA Means for Taxpayers Today
The One Big Beautiful Bill Act (OBBBA) has been one of the most talked-about tax developments of the year. While it includes several provisions, the most important takeaway for many taxpayers is that it extends and solidifies key elements of the 2018 Tax Cuts and Jobs Act instead of allowing them to expire.
Kevin explains:
“Most of this bill is making that stuff ‘permanent’ until they decide to change it again … the main thing to highlight is that it's not going to change at the end of this year like it was set to.”
- Extended TCJA Provisions
Key provisions that continue under OBBBA include:
- Lower income tax brackets, generally 2–3% below historical averages
- Higher standard deductions, simplifying filing for many households
- Bonus depreciation for qualifying business investments
- Qualified Business Income (QBI) deduction for many small businesses
- A significantly higher estate tax exemption, currently around $15 million per person
These extensions give individuals and business owners more time to implement strategies such as Roth conversions and income timing while rates remain relatively low.
The Temporary Increase to the SALT Deduction Cap
One of the more notable OBBBA updates is the temporary increase to the State and Local Tax (SALT) deduction cap, which rises from $10,000 to $40,000.
Kevin explains what that means in practical terms:
“Previously the SALT cap… was all capped at $10,000. As part of this bill, they increased that cap to $40,000 temporarily.”
For many taxpayers, especially those with high property taxes or those living in high-income-tax states, this change may make it worthwhile to revisit whether itemizing deductions once again provides more benefit than taking the standard deduction.
At the same time, Kevin cautions that phaseouts apply:
“There are [phaseouts], and that's true for pretty much everything we're talking about in these law changes. So, it's not going to apply to everyone, but it will benefit some people with higher property taxes, and then also those in states where income taxes are a lot higher.”
Additional Temporary Provisions (2025–2028)
The OBBBA also introduces several short-term measures affecting taxpayers between 2025 and 2028, including:
- Tax-related changes for tips and overtime
- An increased deduction for seniors (currently $6,000 per person over age 65, with income phaseouts)
- Adjustments to certain interest deductions and other targeted provisions
These shorter-lived changes are another reason it’s important to review your tax strategy regularly rather than relying on a one-time plan.
How SECURE Act 1.0 and 2.0 Changed Retirement Planning
While the OBBBA captures current headlines, the SECURE Acts arguably created some of the most sweeping retirement-planning changes in decades.
- The 10-Year Distribution Rule for Inherited IRAs
One of the biggest shifts is the 10-year rule for many non-spousal beneficiaries of traditional IRAs. In many cases, inherited IRAs must now be fully distributed within 10 years, which can push beneficiaries—often already in their peak earning years—into higher tax brackets.
Kevin sees the impact firsthand:
“I do have clients that come in and they don't really understand that now that they've gotten this big pile of money… they're going to have to take that out within 10 years.”
This change has increased the importance of strategic Roth conversions during the original account owner’s lifetime:
“If you have a situation where you're considering doing a Roth conversion… you're now thinking about the next generation when you do something like that.”
Because inherited Roth IRAs aren’t subject to the same tax treatment as inherited traditional IRAs, they can provide meaningful flexibility for beneficiaries.
- Higher RMD Ages and More Flexibility
The SECURE Acts also:
- Increased the age at which Required Minimum Distributions (RMDs) must begin, giving retirees more flexibility to manage income.
- Expanded access to Roth accounts and catch-up contributions.
- Introduced a “super catch-up” window between ages 60 and 63, allowing additional retirement contributions for a short period.
Kevin notes the unusual nature of some of these targeted windows but emphasizes that they still create valuable opportunities when used strategically.
- 529-to-Roth Rollovers
For families who have diligently saved in 529 college savings plans but find they have unused funds, SECURE Act changes now allow certain 529-to-Roth IRA rollovers (subject to rules and limits).
“What those acts did is allow Roth rollovers from 529 plans. So that's a strategy we're seeing a lot of people utilize, which is really beneficial for younger people.”
The earlier Roth dollars get to work, the more powerful the tax-free compounding over time.
Why Roth Accounts Matter So Much
Roth accounts continue to be a central planning tool:
“I'm not sure everyone completely understands why the Roth is so beneficial, but it really is. It is after-tax dollars, but it's tax-free growth,” Kevin emphasizes.
That combination—tax-free growth and tax-free qualified withdrawals—can be especially powerful when combined with today’s lower income tax brackets and thoughtful long-term planning.
Common Tax Misconceptions: What’s Actually Not Deductible
With social media “tax hacks” appearing everywhere, it’s easy to see why misconceptions are on the rise. Kevin regularly helps clients unwind some of these myths.
- Turning Every Trip into a “Business Trip”
“There was one lady that said she never takes a vacation. And so every trip that she takes is a business trip. Well, that's sort of… not really going to hold up.”
Calling personal travel “business” doesn’t automatically make it deductible. The IRS looks for ordinary and necessary business expenses—and those standards are stricter than many people realize.
- Writing Off Your Entire Lifestyle
Kevin has seen videos claiming you can write off almost every aspect of your lifestyle:
“If it's just somebody on TikTok or YouTube that is telling you [that] you can write off pretty much your entire lifestyle, [that’s] not going to be a thing.”
Similarly, strategies like going out to dinner nightly and claiming it all as business because you “talk about work” with your family won’t hold up under scrutiny.
- Forming an LLC Solely for Tax Savings
Kevin also cautions against forming an LLC just to chase tax deductions:
“An LLC is a state designation… really forming an LLC is just—I do recommend it in a lot of situations—but just to do it just for tax purposes is not really going to get you anything. And also you have to have a business.”
In other words, you need a legitimate business, not just a shell to funnel personal spending through.
The Power of Coordinated Planning: CPA + Financial Advisor
Tax outcomes are not just about what happens in April—they’re the result of decisions made all year long. Kevin strongly advocates for ongoing collaboration between CPAs and financial advisors:
“To have that conversation and say, how does this change things for us? We had planned to convert X amount of dollars before 2025. Now do we have more time? Can we stretch this out a little bit now…?”
He also points out the risks when professionals aren’t in regular contact:
“A lot of times the ship sails on some of this tax planning at the end of the year… Sometimes we have to have some tough conversations… I don't like telling people they owe a lot of money unexpectedly.”
When your CPA and financial advisor work together, you’re more likely to:
- Minimize tax surprises
- Proactively use lower brackets, deductions, and credits
- Align investment strategies with tax realities
- Plan more effectively for retirement and wealth transfer
Final Thoughts
Today’s tax environment is complex, fast changing, and full of both pitfalls and opportunities. Laws like the OBBBA, the TCJA extensions, and the SECURE Acts affect not just this year’s tax return, but long-term retirement, estate, and legacy planning.
Insights from experienced professionals like Kevin Jenkins, CPA of Jenkins & Associates, highlight an important truth: the best outcomes typically come from coordinated planning between your CPA and your financial advisor, grounded in your specific goals and circumstances—not in one-size-fits-all advice from social media.