Roth accounts

Unlike other tax-deferred accounts, contributions to Roth 401(k)s and Roth IRAs can only be made with after-tax dollars, so they won’t reduce the current taxable income. However, when you withdraw the money in your golden years, you won’t have to pay taxes on appreciation, income, or withdrawals.

A Roth IRA is also exempt from RMDs (except if you inherit it), but a Roth 401(k) isn’t, even if you can still avoid RMDs, by simply rolling it into a Roth IRA when you retire.

Taxable accounts

These bank and brokerage accounts can also be funded with after-tax dollars. For brokerage accounts, you might still sell securities and contribute or withdraw money anytime, anywhere you want, without any penalty. Any taxable investment income might be taxed in the year it has been earned, and investments that will be sold for profit are subject to capital gains taxes.

If you decide to sell an investment for a loss, you could use it to offset any gains: put o $3,000 of ordinary income. All of these are exempt from RMDs.