August 2025 KWP Newsletter

Understanding the New Tax Law and Your Retirement Income July 4, 2025 marked the signing of the One Big Beautiful Bill Act (OBBBA).  With the new tax changes bringing some of the most meaningful relief for retirees in decades, let’s review a few of the key takeaways. For clients who rely on Social Security and investment income, the combination of an enhanced standard deduction and a new senior deduction could mean significantly lower—or even zero—federal income tax liability. This is especially important for those living on a fixed income, as more of your benefits will stay in your pocket. Below, we’ve illustrated how the changes might affect a 65-year-old couple with Social Security benefits and supplemental qualified investment income.

_{https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/tax-brackets.html?utm}

_{https://blog.ssa.gov/social-security-applauds-passage-of-legislation-providing-historic-tax-relief-for-seniors/?utm}

Planning Ahead for Your Situation Every household’s retirement income mix is unique, and the new tax rules can affect each person differently. Our office is prepared to review your specific Social Security benefits, investment income, and deductions to see exactly how these changes may impact your 2025 tax bill. This personalized review will help ensure you take full advantage of the new law while aligning your tax strategy with your long-term retirement goals.

_{https://www.kiplinger.com/taxes/tax-changes-older-adults-and-retirees-should-watch?utm_} 

_{https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors?utm_}

_{Important Disclosure Information}

_{**Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Kotys Wealth Professionals (“KWP”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from KWP.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  KWP is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of KWP’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a KWP client, please remember to contact KWP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. KWP shall continue to rely on the accuracy of information that you have provided or at www.kotyswealthpro.com.  Please Note: IF you are a KWP client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.}