ETFs & Funds
Home›ETFs & Funds›Fund Industry›Millionaire retirees face higher taxes as 2028 tax bre…
Millionaire retirees face higher taxes as 2028 tax breaks near
The article says more than 655,000 Americans had seven-figure retirement accounts as of Q4 2025, citing Fidelity data.
A Yahoo Finance piece highlights how some higher-balance retirees may face rising federal tax burdens as certain tax breaks tied to a proposal dubbed the One, Big, Beautiful Bill Act (OBBBA) are set to expire after 2028. It frames the issue around the tax code being more flexible for higher-income taxpayers, while also noting that many retirees with substantial assets can still get targeted by higher effective rates.
The article points to retirement savers focusing on tax-advantaged accounts such as 401(k)s and IRAs, but argues that this strategy can be undermined when provisions roll off. It says the tax landscape has become a growing concern for people who have accumulated more than $1 million in tax-deferred accounts, which it describes as rare.
According to data cited in the article, roughly 655,000 Americans had seven-figure retirement accounts as of the fourth quarter of 2025, based on Fidelity data referenced by Morningstar. The piece also notes that individuals with combined income below $25,000 a year generally do not pay federal income tax on Social Security benefits, and married couples filing jointly are exempt until $32,000 in combined income.
The article further states that, for older Americans, the OBBBA includes an additional deduction that could reduce federal tax bills for some retirees during 2025 through 2028. It says taxpayers aged 65 and older may qualify for an additional $6,000 deduction for those years, and potentially $12,000 for some households, as described in the piece.