Paying taxes during your retirement years can significantly reduce your retirement income. Finding ways to eliminate most of them can make your retirement more comfortable. Here are some ways you can reduce your taxes by using tax-free income.
Deposit Retirement Money Into a Roth Account
One of the best ways to save for retirement is to have the money automatically deposited into your employer’s retirement plan where they offer matching contributions. This method enables you to build your retirement savings faster.It would be even better if the employer offered a Roth 401(k) or a Roth IRA account, but not all employers offer them. Contributing money to a traditional 401(k) or IRA will let you take home more money now, but you will have to pay taxes when you withdraw the money—when you will likely be in a lower tax bracket.
