In this episode, Dan and Katelyn discuss key 2025 tax changes from the OBBBA and their impact on federal employees. They cover tax deductions, estate planning, and student loan updates, followed by Roth conversion strategies to help diversify retirement portfolios and manage future tax risks.
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The Fed15 Podcast: Key OBBBA Provisions and How They Affect Roth Conversions
Dan reviews key provisions of the One Big Beautiful Bill Act (OBBBA) and the various sectors it affects. He covers tax changes and deductions — from the standard deduction increase to the overtime pay deduction — as well as updates to estate and gift tax exemptions and the introduction of “Trump Accounts” for children born between 2025 and 2028. He also briefly addresses changes to student loans, clean energy incentives, and education-related provisions.
Katelyn then explores the case for Roth conversions, beginning with the pre- vs. post-TCJA landscape and how the OBBBA extends TCJA tax brackets with inflation adjustments. She explains how Roth conversions can help tax-diversify retirement portfolios and potentially protect against future tax increases. Her discussion includes how Roth conversions work, their benefits — from tax diversification to estate planning advantages — and strategies for optimizing tax efficiency.
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