Invest in Roth accounts
Distributions from Roth 401(k) and Roth IRA accounts are not taxable in retirement. You can take as much money out of these accounts as you would like without owing taxes, provided you follow IRS withdrawal rules.
If you don't want to worry about paying taxes after you retire, use these accounts as your primary retirement savings vehicles. Or, put at least some of your retirement money into them throughout your working life to reduce your future tax bills.
Be aware, though, that Roth accounts do not provide an up-front tax break in the year you make your contributions. As a result, it makes sense to choose Roths over traditional accounts if you expect your tax bracket will be higher in retirement than during the years you're contributing to your retirement accounts.
It's possible to convert traditional accounts to Roth accounts. However, there are tax consequences, and a five-year rule may limit your ability to access your funds tax-free if you roll over your account too close to retirement.
Live in a tax-friendly state
Some states have more tax friendly policies than others. Nine states levy no taxes at all on any income, while others don't tax Social Security.
Since your geographic location isn't limited by your job after retirement, it can pay to relocate to a place where you won't owe your state government as much tax money.
