OBBBA Tax Law Changes

We have gotten a lot of questions so far about the recent tax law changes and how they might impact your personal income taxes.  Before we start our semi-annual reviews of your 457(b) accounts, we thought it would be helpful to share a year-to-date Market recap and a summary of the latest tax law changes resulting from the passage of the “One Big Beautiful Bill Act” (OBBBA).  Please take a moment to carefully review the information below:

State of the Markets - Halfway through 2025

Despite a market correction of nearly -15% in April, a barrage of gloomy economic predictions related to the impact of trade tariffs, and a 12-day war with oil rich Iran, the S&P 500 and the NASDAQ hit new highs last week.  For those of you who have once again resisted the urge to time the Market, you have been richly rewarded this year for your patience and discipline.  Here are how the general market indices have performed Year-To-Date (as of 7/3/25):

S&P 500  +6.76%

NASDAQ  +6.68%

DOWJ  +5.37%

Russell 2000  +0.85%

U.S. Real Estate  +2.77%  (DFREX - Dimensional U.S. Real Estate)

International  +20.84% (VTMGX - Vanguard Developed Markets Index)

Emerging Markets  +11.80% (VEMAX - Vanguard Emerging Markets Index)

If it’s been a while since you logged into your DecisionPoint 457(b) account, we encourage you to do so at: www.dp457b.com.  Please contact us if you have trouble logging in.

Summary of the New Tax Law Effective July 4th

The One Big Beautiful Bill Act (OBBBA) is now law.  Here is a summary of how the new law may affect your personal income taxes:

Prior to the passing of OBBBA, the current income tax brackets were set to expire at the end of 2025 and revert back to the significantly higher rates that were in place prior to the passage of the 2017 "Tax Cuts and Jobs Act" (TCJA).  The current (2025) tax brackets are now as follows:

DecisionPoint 457(b) Account Reviews

Twice a year we continue to log into your retirement accounts to review your investment allocation, contribution rates, beneficiaries, and other information.  Over the next 60 days we will be completing those reviews and sending you an email with our summary and advice.  We hope you will take the time to read those reviews and follow our fiduciary advice.  

As always, please reach out if we can be of assistance! 

- Your DecisionPoint Financial Planning Team -