There are many ways you can do this, here are four simple methods. 1. Always remember to withdraw your money from your retirement accounts. Once you turn 73, you are required to take mandatory withdrawals known as required minimum distributions (RMDs). 2. Be sure to understand the tax bracket that you fall under. Any social security benefits and other income you may be receiving can cause your social security benefits to be taxable. If you are on the edge of jumping tax brackets, consider taking less retirement distributions that year. 3. Making withdrawals before you need to. Taking smaller distributions from your retirement accounts during your 60s can spread your tax liability over more years, keeping you in a lower tax bracket and lowering you tax bill over your lifetime. 4. Consider moving to a tax-friendly state. Some states, more than others, offer retirees incentives to move there. Some of these incentives are no sales tax, low property taxes, and no state personal income tax.

You need to start withdrawing money from traditional 40(k)s and IRAs by the time you are 73 years old. These are mandatory withdrawals, known as required minimum distributions (RMDs). If you have a traditional IRA or 401(k) account, where taxes have been deferred until you start withdrawing money in retirement, you have an option. You can leave the money there, and the taxes will come due (including required minimum distributions, or RMDs, when you turn 73) at whatever rate the government decides, or you can start transferring that money into a Roth account. Some states have more tax friendly policies than others. Nine states levy no taxes at all on any income, while others do not tax Social Security. Hence moving to a different state is also an option.