1. Opt for a mix of retirement accounts
A surefire way to reduce taxes in retirement is to opt for a mix of retirement accounts.
The vast majority of seniors tend to have a pretty high tax bill due to the frequent withdrawals they make to live comfortably in their golden years (or at least until they see their tax bills).
Most retirement plan accounts like 401(k)s and traditional IRAs force you to include all of your withdrawals as taxable income in the same year you actually take money out to enjoy your life as a retiree.
That’s why it might be an excellent idea to opt for a mix of retirement accounts in order to balance your withdrawals. For instance, Roth IRAs and Roth 401(k)s accounts don’t require taxable income on withdrawn funds.
