AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Markets This Savings Strategy Could Drastically Cut Your Tax Bill in Retirement March 13, 2026 — 06:38 pm EDT Written by Kailey Hagen for The Motley Fool -> Key Points You pay taxes on Roth retirement account contributions in the year you make them. As a result, you're allowed to take tax-free withdrawals in retirement. Having some Roth savings gives you more control of your retirement tax bill. The $23,760 Social Security bonus most retirees completely overlook › When you're saving for retirement, it's easy to focus solely on your retirement account balance. But it's important to remember that the money isn't always all yours to keep. It depends on which type of retirement account you use. If you want to keep your tax bill as low as possible in retirement, there's one category of accounts you should prioritize. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Image source: Getty Images. Roth retirement accounts are unique in how the government taxes them. Unlike traditional accounts, Roth accounts don't give you an upfront tax break on your contributions. This means you'll have to pay taxes on these funds in the year you make them without tapping any of those contributions to help you cover the bill. In exchange for this, your money grows tax- and penalty-free afterward. As long as you're at least 59 1/2 and have had a Roth account for at least five years, you can withdraw money from these accounts in retirement, and the government will ignore them when calculating your tax bill for the year. Having at least some Roth savings gives you a lot of flexibility in retirement. If you're nearing the top of your tax bracket, you can rely more upon your Roth savings for the rest of the year to keep yourself from jumping up a tax bracket. You're allowed to contribute up to $7,500 to a Roth IRA if you're under 50 this year and $8,600 if you're 50 or older. Contribution limits for Roth 401(k)s are $24,500 if you're under 50, $32,500 if you're 50 to 59 or 64 or older, and $35,750 if you'll be between the ages of 60 and 63 by the end of the year. Just make sure you understand the rules for your Roth IRA or 401(k) before you put any money there. And always make sure you review any changes, like increased contribution limits, before putting savings here in future years. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more ... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies. View the "Social Security secrets" » The Motley Fool has a disclosure policy . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags Markets The Motley Fool Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. Visit Fool.com for more market news -> More articles by this source -> More Related Articles This data feed is not available at this time. Data is currently not available • Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.