What CFP® Professionals Need to Know About the One Big Beautiful Bill: Opportunities and Risks

CFP® Board In The News

The recently passed One Big Beautiful Bill (OBBBA) is making headlines, not just for its sweeping tax code changes, but for the long-term planning ripple effects it introduces.

While the CFP Board has rightly spotlighted the bill’s implications for 529 plans, standard deductions, and SALT caps, this legislation extends far beyond the headlines. It permanently reshapes key portions of the TCJA and introduces new tools and wrinkles that every financial planner should be aware of.

Let’s dig into the major provisions that demand your attention — and how to help clients take full advantage of them.

Permanent Extension of Core TCJA Measures

Many of the TCJA’s provisions, originally set to sunset after 2025, are now permanently enshrined:

  • Individual tax rates remain lowered across most brackets
  • Increased standard deduction and elimination of personal exemptions remain
  • Expanded child tax credit provisions continue

Planning Insight: This gives clients longer-term stability in tax forecasting. It’s time to revisit retirement distribution strategies, Roth conversions, and income-shifting plans with confidence that these lower brackets are here to stay.

SALT Deduction Cap Doubled

The deduction limit for state and local taxes (SALT) increases from $10,000 to $20,000 for joint filers.

Planning Insight: This is a win for clients in high-tax states. Itemization may once again be viable for households with high income or property taxes — especially when paired with mortgage interest or charitable deductions.

Introduction of “Trump Accounts”

A surprise late addition to the OBBBA, these new tax-advantaged investment accounts — dubbed “Trump Accounts” by the media — offer:

  • Annual contribution limits of $5,000 per adult
  • Tax-free withdrawals after age 59½
  • Use for retirement, education, or healthcare expenses
  • No income caps for eligibility

Planning Insight: These accounts blur the lines between Roth IRAs, HSAs, and 529s. Advisors must understand the rules and help clients determine where these fit into their savings stack — particularly for high-income clients who are phase-out limited elsewhere.

New Risks for Planners to Manage

With opportunity comes complexity — and risk. Here’s what to watch for:

  • Client overconfidence in “tax-free” accounts may lead to under-saving in other vehicles
  • Mid-career professionals may assume they’ve “missed the boat” on education credits or Trump Accounts — targeted outreach is key
  • Estate planning documents may need to be updated, especially those reliant on pre-2025 sunset provisions or old exemption thresholds
  • Clients without advisors may misunderstand the changes — and that’s your opening to add value

Your Role in the New Tax Environment

The OBBBA reinforces the need for trusted, credentialed, and holistic financial advisors. Clients aren’t looking for someone to just interpret the new law — they want someone to contextualize it within their goals, values, and life stage.

Whether it’s helping a family repurpose 529 funds for a certification program, or guiding retirees on strategic distributions from Trump Accounts, CFP® professionals are uniquely positioned to lead the way.

Bottom Line

The One Big Beautiful Bill isn't just a tax update — it’s a tectonic shift in how Americans will save, spend, and plan. Now is the time to demonstrate the true value of the CFP® designation by educating clients, updating financial plans, and delivering proactive insight.

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Posted in CFP in the News

About Shawn Janes