how do high income earners reduce taxes 
there are many ways to reduce taxes that are not only available to high income earners but to all earners these include contributing to retirement accounts contributing to health savings accounts hsas investing in stocks with qualified dividends buying muni bonds and planning where you live based on favorable tax treatments of a specific state can i contribute to a 401 k a traditional ira and a roth ira yes you can contribute to a 401 k a traditional ira and a roth ira you must ensure that you only contribute the legally allowed amount per year if you invest in both a traditional ira and a roth ira you cannot contribute more than the overall maximum allowed for an ira the bottom linetax planning involves utilizing strategies that lower the taxes that you need to pay there are many legal ways in which to do this such as utilizing retirement plans holding on to investments for more than a year and offsetting capital gains with capital losses 