"You likely won't have a huge amount of income when you retire, which means a portion of your IRA withdrawals may be taxed at low rates, even if you consider income from Social Security. Part of your traditional IRA and 401(k) withdrawals may be taxed at 0 percent, some at the next tax bracket, and only some will be taxed at your marginal tax rate.... [Further, those] who live in a state with a high income tax can potentially save money if they defer income tax on their retirement savings and then move to a state with no income tax when they start withdrawing their retirement funds."  MORE >>