Is the interest on an IRA taxable?

3 ⤊

Is the interest on an IRA taxable?

2007-02-01 11:30:00 · 3 answers · asked by Road Trip 3 in Business & Finance ➔ Taxes ➔ United States

3 answers

If it's a traditional IRA, the principal and the interest earned are only subject to tax when you withdraw it. Until you do, interest accumulates tax-free.

If it's a Roth IRA, the interest accumulates tax free as well. If you withdraw it at age 59 1/2 or later, it's tax free then too!

2007-02-01 11:43:01 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋

Nope. Interest earning inside an IRA is not taxable.

Best wishes.

2007-02-01 20:21:33 · answer #2 · answered by JQT 6 · 1⤊ 0⤋

Depends--is it a traditional IRA or a Roth IRA?

2007-02-01 19:35:28 · answer #3 · answered by alienz_r_us 1 · 0⤊ 0⤋