When it comes to diversity, you shouldn’t only think about your investment portfolio. If you are actively saving for retirement, it could also be a good idea to diversify how and when you’ll have to pay taxes on your savings. Doing so might help you successfully navigate two unknowns in retirement. How much of your income will be taxed?

You have to consider many things: not only your retirement savings but also Social Security, pensions, your other investments that have nothing to do with retirement, and other potential sources of income. What will your tax rate be after deciding to retire?

Nowadays, rates are technically low by historical standards, but there are high chances to increase before or during your golden years. So if you want to know how to plan for a better tax outcome, here’s what you need to know!

There are four account types that you can access, each with its own unique tax advantages: