If you have a IRA or 401K do you have to pay taxes each year if you have any dividends and it goes back in?

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2007-02-02 15:18:36 · 5 answers · asked by Tim M 1 in Business & Finance ➔ Investing

2007-02-02 15:22:54 · answer #1 · answered by barbiehow 3 · 0⤊ 0⤋

No. Thats the point of an IRA and 401k. You dont have to pay taxes on the divdends and interest, atleast until you take the money out.

2007-02-02 23:26:14 · answer #2 · answered by jeff410 7 · 0⤊ 0⤋

No. Only if you plan to cash in your 401 or IRA but if you roll it into something else then you shouldn't have to pay anything.

2007-02-03 00:27:15 · answer #3 · answered by Jeremy M 2 · 0⤊ 0⤋

No, all earnings on IRAs or 401(k) plans are not taxed until withdrawn.

2007-02-02 23:26:02 · answer #4 · answered by gabster_65 2 · 0⤊ 0⤋

No, you only have to pay taxes on the withdrawals.

2007-02-02 23:26:25 · answer #5 · answered by barringtonbreathesagain 2 · 0⤊ 0⤋