This really depends on the retirement plan, and not all retirement plans necessarily minimize taxes.
Most plans that used what is colloquially referred to as "qualified" money, which means money that is deducted from income for income tax purposes in the year the money is placed into the plan will reduce your taxable income for that year.
Many accountants and financial advisers will suggest you do this to save taxes in that given year. Whether or not this ultimately saves you any money in taxes long term depends on your taxable income once you retire and begin to take the money out of the plan, at which point in time it must be recognized as income and taxes will be due.
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Most plans that used what is colloquially referred to as "qualified" money, which means money that is deducted from income for income tax purposes in the year the money is placed into the plan will reduce your taxable income for that year.
Many accountants and financial advisers will suggest you do this to save taxes in that given year. Whether or not this ultimately saves you any money in taxes long term depends on your taxable income once you retire and begin to take the money out of the plan, at which point in time it must be recognized as income and taxes will be due.