It’s official: The IRS has opened the 2026 Tax Filing Season. Between now and April 15, nearly 164 million people will file an individual income tax return.
Many of those individual income tax returns will be significantly different from 2025, thanks to the One Big Beautiful Bill Act and the myriad of new tax provisions that retroactively apply to income earned in 2025.
This first post-OBBBA filing season creates a significant opportunity for financial advisors, not only to educate clients on what’s changed with OBBBA, but to open tax conversations so clients can be prepared for what lies ahead.
Here are three tools to help.
#1 | What’s Going on With Social Security Taxes?
One provision in OBBBA has created more excitement – and confusion – than all the rest. It’s a new tax deduction intended to offset the cost of Social Security benefit taxation.
The confusion stems from this: Congress did not vote to eliminate the taxation of Social Security benefits, as many Americans believe. But relief is still coming to senior filers!
Instead of eliminating the taxation of benefits directly, the bill provides a new tax deduction available to Americans age 65+. The deduction amount is based on a saver’s modified adjusted gross income (MAGI). It starts at $6,000 for individual filers and $12,000 for joint filers, subject to income limitations.
If you’re a retirement advisor, there’s a good chance this new deduction will apply to many of your clients. The deduction is provided in addition to the existing standard deduction and can also be used by Americans who itemize their deductions. It’s also available to all Americans age 65+, regardless of whether an individual has elected Social Security yet.
Need help explaining the new deduction to your clients? Download our helpful Advisor Primerhere.
#2 | How Do I Position OBBBA – Short-Term and Long-Term?
OBBBA is a signature piece of tax reform legislation, which means its impacts will inform taxes in both the short- and long-terms.
And it’s important your client understands both.
After all, none of your clients plan to live in retirement only for the next few years. Because retirement is a long-term endeavor, the long-term impact of this legislation and other economic, demographic, and fiscal trends are equally critical to evaluate and address.
If you’re looking for insight, you can watch this recording of a webinar I hosted, where I break down the short-term and long-term impacts of OBBBA for your clients – and how you can leverage today’s lower rates to successfully help your clients protect themselves from rising taxes in the future.
#3 | How Can I Help My Clients Prepare?
OBBBA prevented a big tax hike from occurring in 2026, when the Tax Cuts and Jobs Act was set to expire. But today’s lower rates aren’t likely to last long. Government spending and demographic pressures mean many of our clients are at risk of rising taxes throughout their retirement.
So how do we leverage today’s lower tax rates to help our clients prepare for the future?
If your clients are looking to diversify the tax status of their retirement assets – through a Roth Conversion or other approach – this is the time to get started.
OBBBA has made Roth Conversions tricker than in the past. As an advisor, you need to balance the taxes and IRMAA fees paid today (along with new deductions available) against tax and IRMAA savings in the future. It can be hard to dial in the most effective – and tax-saving – approach.
If you’re looking for guidance on the factors to consider, check outthis blog post I wrote on three factors to consider in a Roth conversion.
And if you’re looking for a done-for-you option, check out Stonewood’s Roth Done Right software. It models your client’s best path forward to minimize taxes and IRMAA – both while converting AND in retirement.
Free Study Group Replay
How Stonewood Advisors Stay Ahead of the Next Planning Conversation.
Watch a recent Stonewood Study Group focused on the legacy planning conversation. You’ll see how Stonewood helps advisors break down timely planning topics, client conversation angles, and practical strategies you can put to use immediately.
Expert insights. Real strategies.
Study Group Replay
Timely planning topics
Real client conversation angles
Practical strategies you can use
Real Advisors. Real Results.
See how advisors are using Stonewood software to win larger cases and deliver better
outcomes for their clients.
An advisor was working with a prospect who was a real "do-it-yourselfer" when it came to Roth conversions.
The client was converting assets up their existing tax bracket – and hadn't considered any impact to
IRMAA.
With Roth Done Right, the advisor was able to show an alternate pattern that sped up the conversion to
6 years. The new structure offered $30,000 savings in conversion taxes – a 20% reduction on the
prospect's conversion tax bill. The report also showed hundreds of thousands of dollars in long-term
tax and IRMAA savings from the converted assets – an amount the prospect hadn't been able to quantify
on his own.
Outcome
A new client with $1M in new AUM, and a $1M FIA sale to fund the conversion process.
An advisor was working with a prospect who already had assets with Ken Fisher. Fisher's team presented a
5% systematic withdrawal projection, so the advisor needed a stronger way to frame the income
conversation.
Using the Annuity Alpha report, the advisor showed how an annuity could deliver over 8% in annual cash
flow with lifetime income, plus a long-term care doubler. The contrast was clear enough that the prospect
moved forward.
Outcome
$1.5M placed and a $100K in new business revenue.
An advisor was working with a 58-year-old couple with an established, well-funded retirement income plan,
leaving an additional $3M IRA to build out a legacy for the kids. The couple's existing advisor had no
real additional plan for this money, other than to keep it in their managed account and grow that money as
much as possible for the kids.
Using the Legacy Done Right report, the advisor showed the need for tax planning on this $3M IRA.
According to the advisor, the simple analysis "opened up the wallet" to the Roth conversion story. The
advisor then used the blended Roth/Life feature in the report to show a blend of Roth Conversion assets
with some Life Insurance to help maximize the client’s legacy.
Outcome
$3M in motion. The advisor picked up a $1.5M FIA sale that will be converted to Roth. And the advisor
also sold a 5-Pay Protection focused IUL policy at $225,000 of premium per year.
An advisor group incorporated the Total Tax Burden report into the strategy presentation for all new
prospects. They ran the tax snapshot for every new client as part of their first meeting conversation,
quantifying the growing tax burden of IRA money – and illustrating the kinds of tax savings possible
when working with their firm.
Starting in January of 2023, this simple analysis was presented to every single prospect who walked in
the door. The goal was to differentiate their practice and drive overall revenue growth through various
Roth conversion strategies.
Outcome
From 2022 to 2025, new annual AUM rose from $5M to $50M. Annual FIA sales rose from $3M to $35M.
And annual life premium rose from $50K to $1M.
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