Don Dirren added that taxes may differ from what you expected them to be in retirement, but a well-developed tax strategy can help you get more out of your savings. Ideally, you’ll work with a CFP(r) professional and your accountant to develop a personalized plan to maximize your income while reducing taxes in your golden years.

By investing a portion of your pre-tax income into a tax-deferred account, you can relieve the pressure on your budget and make it last longer. In addition, tax-advantaged accounts allow you to grow your money without triggering a hefty tax bill when you withdraw it in retirement.

A savvy investor will take advantage of various opportunities to make the most of their investments. This can include choosing which stocks and bonds to buy, avoiding losses, and taking advantage of various tax breaks.

When working, you can typically count on your employer to deduct a portion of your taxes with each paycheck. That can mean a significant deduction in your pocket at the end of the year. But by the time you retire, you’ll have to make your deductions if you don’t want to pay penalties and a hefty tax bill at year-end.

You may have a pension, traditional IRAs and 401(k)s, non-tax-deferred accounts, such as stocks, bonds, and mutual funds not held in a tax-deferred account, and even Roth accounts. Depending on your current situation, drawing from different buckets may be more efficient if you have enough income to support multiple withdrawals.

Traditionally, tax professionals suggest that investors withdraw from taxable accounts, then tax-deferred accounts, and finally, Roth accounts where withdrawals are tax-free. For many, this strategy works well, but it’s not a good fit for every investor. If your retirement income is relatively even year over year, it might be better to withdraw a percentage of your total savings from each type of account.

If you are married, you can name a surviving spouse as your beneficiary for a portion or all of your retirement accounts. This is an intelligent choice because it can help reduce RMDs. It can also give your surviving spouse access to a wide variety of options that you might not have in your case, including rolling over a deceased spouse’s accounts into her own and taking RMDs based on her age.

Developing a tax efficiency plan can significantly impact how much you owe the IRS from year to year. It can also affect your overall savings and how long those assets will last.

Don’t forget to consider the impact of Required Minimum Distributions (RMDs) and other factors that could change your tax bracket in retirement. Talk to your CFP(r) professional and your accountant about creating a detailed tax bracket map, so you know how to maximize your income and minimize your tax burden.