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This CPA says the One Big Beautiful Bill could cost some clients money, but could also expand Roth opportunities. By Ben Mattlin

Nothing in the new law specifically addresses Roth accounts, he said, yet several of its provisions could have costly repercussions for clients who undertake Roth conversions.

The law made permanent the lower tax brackets that went into effect back in 2017 and were due to expire, said Keebler. He suggested that financial planners should consult a CPA to make sure their clients’ estimated income for the year— and their expected tax bracket— is accurate, since converting traditional IRAs to Roth IRAs increases clients’ taxable income in the current year— in exchange for their being able to take distributions tax-free later on. The lower tax brackets make it safer for more clients to do Roth conversions and not have the increase in immediate income push them into a higher tax bracket.

At the same time, if you know a client’ s tax bracket and expected income in advance, you can recommend a Roth conversion that pushes their taxable income up to the limit of their tax bracket.“ Fill up those tax brackets,” he said.

Under the new law, there is also a slight increase in the standard deduction, from $ 15,000 to $ 15,754 for single filers and from $ 30,000 to $ 31,500 for joint filers, with annual inflation adjustments. It’ s not a lot, he said, but it could further expand opportunities for Roth conversions, since it allows clients who take the standard deduction to report higher income without generating extra income tax.

On the other hand, there are several considerations that might reduce the advisability of Roth conversions for some clients, he said.

For example, there is a new senior deduction. Clients who have reached age 65 can claim an additional $ 6,000 on top of the standard deduction, a number that rises to $ 12,000 for married couples if both spouses are 65 or older. This extra deduction might open up opportunities for Roth conversions, he said, but there are a few caveats.

First, the senior deduction is valid only through 2028. Second, the deduction begins to phase out incrementally when a client’ s modified adjusted gross income( MAGI) reaches $ 75,000 for individuals or $ 150,000 for joint filers. Those whose MAGI hits $ 175,000 for individuals or $ 250,000 for joint filers will lose the senior discount altogether, he stressed.

It’ s important to make sure that a Roth conversion does not push clients up to these levels, he said.“ This phaseout creates a new threshold issue for Roth conversions,” he said.

At $ 150,000 of modified adjusted gross income, the senior deduction for a married couple amounts to $ 12,000, he explained, which translates to $ 2,640 in income-tax savings. If that client converts $ 100,000 of IRA funds to a Roth IRA, say, the extra income pushes the cli-

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