6 Steps to Minimizing Taxes on Retirement Income
- Know your tax bracket thresholds. …
- Lower your expenses so you can withdraw less from retirement accounts. …
- Consider making tax-exempt investments. …
- Prioritize your retirement plan withdrawals. …
- Learn which types of income may have tax advantages. …
- Watch your timing.
Also, which retirement accounts spend down first?
But from which accounts should you be taking that money? Traditionally, many advisors have suggested withdrawing first from taxable accounts, then tax-deferred accounts, and finally Roth accounts where withdrawals are tax-free. The goal is to allow tax-deferred assets to grow longer and faster.