These pre-tax contributions can reduce your taxable income and your earnings will grow tax deferred or tax free if you are using a Roth IRA.
An HSA works with a qualifying high-deductible health plan. Money goes in tax free, grows tax free and comes out tax free when used for qualified medical expenses. Unused funds can be carried over, and the account is yours to keep even if you change jobs, health care plans or retire.
Mutual funds typically generate higher capital gains due to fund managers’ trading activities. Also, some funds pay out a lot of taxable dividends. So, a fund that does relatively little trading or pays lower dividends could be considered tax efficient. The same is true for index funds and ETFs, which have less turnover than mutual funds and capital gains are only taxed when the ETF is sold by the investor.
The interest from municipal bonds is generally exempt from federal income tax, and often from state and local income taxes, too
Tax-loss harvesting is a method where you sell investments in which you have a loss (in your taxable accounts), and then offset realized investment gains with those losses.