You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a tax-wise way to build a nest egg.
Many financial advisors and accountants suggest contributing as much money as possible to your workplace 401k or traditional IRA. The money put into these retirement vehicles reduces taxable income and saves taxes today. For many people, funding a Roth IRA may be a better strategy.