Donald Trump's Proposed Tax Legislation: How It Will Benefit You and Your Savings
“A Big, Beautiful Bill”
If you’ve been paying attention to the news lately, you might have heard some pretty alarming headlines about the economy. Recession fears. Tariffs. The stock market swinging wildly. But here’s something you won’t hear in the headlines: The proposed tax legislation being pushed by Donald Trump could have a major impact on your financial future—if you know how to leverage it.
At Align Money Mastery, we don’t just sit around reacting to headlines. We take action, and we give you the tools to do the same. The truth is, the right tax strategies can position you to build wealth—even in uncertain times. So let’s break down some key elements of the proposed tax breaks, particularly around Health Savings Accounts (HSAs) and how regular earners can take advantage of them.
1. The Big HSA Changes: A Game-Changer for Regular Earners
If you haven’t been taking full advantage of your HSA (Health Savings Account), now is the time to start paying attention. Under this proposed tax bill, HSA contribution limits are about to double for those who meet eligibility requirements. Here's what that will mean for you:
For single filers earning under $75,000 or married couples earning under $150,000, the HSA contribution limits will nearly double:
For singles, from $4,300 to $8,600.
For married couples, from $8,500 to $17,000.
This isn’t a small bump. Doubling your HSA contributions will allow you to set aside a lot more of your income tax-free—and use it for medical expenses down the road. We’ve been talking about long-term financial planning for years, and this is a way to future-proof your wealth.
Why Are HSAs So Important and What Are They?
Here’s why we leverage HSAs so heavily at Align Money Mastery. Most people view HSAs as just a tool for covering medical costs. But that’s only half the story. HSAs are a hidden gem for wealth-building, and here's why:
Triple Tax Advantage:
Tax-Deductible Contributions: Whatever you contribute to your HSA will reduce your taxable income for that year. If you’re in a higher tax bracket, that’s a significant tax break.
Tax-Free Growth: The funds inside your HSA grow tax-free—just like your 401(k) or IRA. This means the money you invest grows faster than it would in a regular taxable account.
Tax-Free Withdrawals: When you use the funds for qualified medical expenses, it’s tax-free. You’re essentially getting double tax advantages—you save on taxes now and when you use the funds.
Use for Retirement:
Long-Term Growth: HSAs are one of the few accounts that allow you to contribute and grow money for the long-term with tax advantages. After 65, the funds can be used for non-medical expenses without penalties, though you will pay taxes on non-medical withdrawals. This makes HSAs one of the most flexible retirement tools out there.
Boost Your Financial Resilience:
Medical costs can be unpredictable, but you can plan for the unexpected with an HSA. While other accounts are often subject to market volatility, an HSA provides a low-risk, tax-advantaged way to cover future health-related expenses while building wealth at the same time.
Why Will This Matter?
For most people, medical expenses are the silent wealth killer. Unplanned medical costs eat away at savings and make it harder to achieve your financial goals. But with this HSA expansion, you’ll have a way to save tax-free for medical costs, and you won’t even need to use the funds immediately. You can grow your HSA as an investment account, and when the time comes to use it, it will be there—and ready to help offset your healthcare costs.
2. The Other Big Tax Breaks: How Regular Earners Will Win
While the HSA changes are some of the most impactful for those with regular W-2 income, let’s look at other elements of the bill that could help you:
Standard Deduction Doubled
The standard deduction will get a permanent boost, so it’ll be easier than ever to reduce your taxable income. For singles, it will be $15,000, and for married couples, it will be $30,000. This will directly reduce the amount of income you pay taxes on—leaving you with more money in your pocket.
No More Tax Hikes on the Middle Class
This bill will ensure that tax cuts for middle-class earners are locked in. You won’t face the increase in tax rates that was previously set to hit in 2026. This will help you maintain more of your income.
Additional Tax Breaks for Families
The proposed bill will extend and increase the Child Tax Credit, meaning you’ll have more money available to invest in your children’s future or fund your savings goals.
3. Why This Will Be Huge for Building Passive Income
This proposed bill will also include expanded opportunities for those of you building passive income streams.
Dividend-producing assets are one of the most powerful ways to generate income with little effort once they’re set up. With the tax changes, the dividends you earn will be even more valuable because you’ll pay less tax on them.
If you’re aiming for financial independence, this bill will help you take a huge step toward that goal by allowing you to earn and keep more of your passive income. Whether it’s real estate or stocks, tax breaks for long-term investors will keep your wealth building faster.
4. A Tax Bill Built for Wealth-Building—Not Just Surviving
This proposed tax bill doesn’t just help you get by in the next year or two. It’s designed to help you build long-term wealth, especially for those of you in the middle class. It allows for tax-free growth in your HSA, gives you a bigger standard deduction, and offers enhanced credits for families.
But here’s the catch: None of this will matter if you don’t have a system. You need to make sure that you’re not just reacting to the tax code—you need a game plan.
Take Action: How to Start Positioning Yourself for These Tax Breaks
Here’s the bottom line: this proposed tax legislation could become a major opportunity to optimize your financial life—especially with accounts like HSAs that allow for tax-free growth.
Here’s how to prepare right now:
Maximize Your HSA (if eligible)
If these new limits pass, you’ll want to take full advantage. That means:
Reviewing your current HSA strategy
Planning for the potential doubling of contribution limits
Using your HSA as a long-term investment vehicle—not just a medical slush fund
Revisit Your Tax Strategy
The proposed expansion of the standard deduction will make strategic planning more important than ever. Get ready to:
Analyze your current deductions
Understand how changes could reduce your taxable income
Align your spending and saving to take advantage of these potential updates
Focus on Long-Term Investments
Whether it's dividend-producing stocks or real estate, the proposed tax structure is designed to favor long-term wealth builders. This is the time to:
Strengthen your asset allocation
Stay consistent with your investment plan
Prioritize appreciating assets that grow over time
Don’t Wait for the Headlines
There will always be another headline, another crisis, another cycle of panic. What separates wealth-builders from wealth-destroyers is discipline and strategy. At Align Money Mastery, we’ve helped hundreds of families achieve incredible financial growth by focusing on the long game.
Now’s your chance to use this tax bill to your advantage. Don’t wait—act with intention, and start building your wealth today.