#5 Strategically Withdraw From Roth Accounts
Another good way to reduce the taxes that you will have to pay is to keep in mind that Roth retirement accounts, including both the Roth IRA and the Roth 401(k), will let you make withdrawals during your retirement years without having to pay taxes on these amounts.
This is a great asset to keep on your radar if you have a Roth account, as this way you won’t add to your taxable income and you can take out some money you need. It may not seem like something you will use but think about it this way.
You could end up selling your home in order to move into a smaller, more appropriate one for your situation. The money you get from selling your initial home is a six-figure capital gain that is going to be taxed. You can then take withdrawals from a Roth account rather than a traditional retirement one for other expenses so that you do not drive up the taxable income and thus reduce the taxes you would have paid!
