Skip to main content
All CollectionsIRA
How is my IRA income taxed?
How is my IRA income taxed?
Updated over 4 months ago

A Traditional IRAs provide tax deferred growth until the funds are withdrawn after the account holder reaches age 59 ½. Withdrawals after age 59 ½ are taxed as ordinary income in the year the funds are withdrawn. Withdrawals before age 59 ½ typically incur a 10% early withdrawal penalty, in addition to reporting it as ordinary income in the year withdrawn.

Did this answer your question?