SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-tax-traditional-ira

With a traditional IRA, when do you pay tax on the earnings?

When you withdraw it in retirement.

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  1. Every April on the growth
  2. When you withdraw it in retirement ✔
  3. When you open the account

Why: Traditional IRA contributions are typically tax-deductible. You pay no taxes on IRA earnings until retirement, when withdrawals are taxed as income.

Huh, didn't know that: A Roth IRA flips this: you pay tax now and qualified withdrawals are generally tax-free.

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References

Answer: When you withdraw it in retirement. Traditional IRA contributions are typically tax-deductible. You pay no taxes on IRA earnings until retirement, when withdrawals are taxed as income.

  1. Investor.gov: Individual Retirement Accounts (IRAs) www.investor.gov/introduction-investing/investing-basics/investment-accounts/tax-advantaged-accounts/retirement-savings/individual-retirement-accounts-iras
    You pay no taxes on IRA earnings until retirement.
    Checked 2026-10-10.

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