Insights

What You Need to Know—and What to Do Next

After months of political buildup, the much-anticipated “Big Beautiful Bill” has officially passed. While the media fixated on “no tax on tips” and claims about Social Security (somewhat misleading), many of the most important provisions haven’t gotten the attention they deserve—especially for Boeing professionals.

In this article, we break down what’s really in the Big Beautiful Bill how it affects you, and the steps you may want to take now.

1. Current Tax Rates Made Permanent

What Changed:
The 2017 tax cuts were scheduled to expire after 2025, reverting us to the higher pre-2017 tax brackets. This bill locks in the current, more favorable tax rates indefinitely. For example, a married couple can now earn over $400,000 after deductions and remain in the 24% marginal tax bracket.

Why It Matters for Boeing Professionals:
This provides a longer runway to take advantage of low tax rates, especially for those nearing or entering retirement.

What to Do:

• Review whether Roth 401(k) contributions now make more sense than pre-tax deferrals.
• Consider Roth conversions while in lower tax brackets—especially during early retirement gap years.
• Maximize Mega Backdoor Roth contributions via your Boeing 401(k) plan.

2. EV Tax Credit Ending — New Auto Loan Deduction Starting

What Changed:
The $7,500 federal EV tax credit is being eliminated after September 30, 2025. Beginning in 2025, a new tax deduction becomes available for interest paid on new auto loans (for loans started after 12/31/2024).

Income Limits:
The new deduction phases out for joint filers between $200,000 and $250,000 of gross income.

What to Do:

For non-EVs, consider financing your purchase starting in 2025 to benefit from the interest deduction—especially if you qualify under the income limits.

If you’ve been considering an electric vehicle, try to take delivery by September 30, 2025 to lock in the current credit.

3. Trump Accounts: Small but Automatic Benefit for Families

What Changed:
A new account type will be automatically created for all U.S. children born between 2025 and 2028. The federal government will contribute $1,000 per child.

Additional Rules:

• You can contribute up to $5,000 per year per child.
• If the parent doesn’t open the account, the government will open one for the child.
• Funds have limited uses and are not as flexible as other account types.

What to Do:

But for your own savings contributions, stick with better options—like 529s and UTMAs—for greater tax efficiency and flexibility.

If you have a child born in the eligible window, accept the $1,000 contribution.

4. 529 Plans Just Got Better

What Changed:
529 college savings plans now come with expanded flexibility. Qualified uses now include apprenticeship programs, K–12 tuition, and up to $10,000 in student loan repayment. Some rollover rules have also been simplified.

Why It Matters for Boeing Professionals:
529s were already one of the most tax-advantaged tools for families. These new changes make them even more valuable, especially for education-minded families looking to pass down wealth tax-efficiently.

What to Do:

For those who’ve already maxed out their retirement accounts, 529s can serve as a strategic gifting and estate planning tool.

Use annual 529 contributions to build tax-free education savings—up to $19,000 per child per year in 2025 (per contributor), with the option to front-load five years at once if desired.

Use 529s not just for traditional college expenses, but also for alternative education paths and student loan payoffs.

5. No Tax on Overtime — With Important Limits

What Changed:
From 2025 to 2028, you can deduct the premium portion of overtime pay (i.e., the extra 50% you earn for “time-and-a-half”)—up to $12,500 for single filers or $25,000 for joint filers.

What to Know:

• Deduction phases out starting at $150,000 adjusted gross income (single) or $300,000 (married).
• This only applies to the premium portion of overtime—not the full OT pay.
• Social Security and Medicare taxes still apply to this income.

What to Do:
This provision likely won’t benefit most salaried Boeing professionals but may apply to spouses or those with contract work.

6. Social Security: Still Taxable for Most Retirees

What Changed:
Some headlines have misrepresented this provision. While the bill introduces a small benefit for lower-income retirees, Social Security remains taxable for most.

What to Know:
Starting in 2025, retirees age 65 and older who are collecting Social Security will receive a new $6,000 deduction. While helpful, this primarily benefits lower-income retirees and does not eliminate taxation for most Boeing professionals.

What to Do:
Be sure to coordinate Social Security into a broader retirement income strategy—one that considers benefit timing, tax bracket management, and required minimum distributions to minimize your overall tax burden.

Final Thoughts

The Big Beautiful Bill delivers several planning opportunities—but only for those who act intentionally.

• Lock in favorable Roth strategies while tax rates remain low
• Plan ahead if purchasing a vehicle—timing now matters
• Take the free Trump Account funds if eligible, but use 529s for meaningful education planning

Coordinate your Social Security strategy with your broader income and tax plan—especially if aiming to reduce how much is taxed in retirement.

Want a Second Opinion?

At Stabler Wealth Management, we specialize in helping Boeing professionals make confident retirement and tax decisions. Schedule a complimentary financial check-up to review your plan and how these new rules may apply to you.

You may also want to read or article, How to Retire from Boeing at Age 55

team@stablerwm.com | (425) 646-6327

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No strategy assures success or protects against loss. Stabler Wealth Management and LPL Financial are not affiliated or endorsed by Boeing.

Securities and Advisory services are offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Stabler Wealth Management is not registered as a broker-dealer or investment advisor.