Retirement accounts, like traditional IRAs, workplace 401(k)s, and Keoghs (which are for the self-employed) are great ways to lower your tax bill. That’s because you don’t pay tax on the money you contribute to them until you withdraw it in the future. That doesn’t eliminate the tax, but you defer it for many years. - See more at: http://www.quickanddirtytips.com/money-finance/taxes/how-to-reduce-your-taxes#sthash.7eZkX6Ig.dpuf