Video: Which types of retirement accounts are taxable?

There are traditional IRAs and 401(k)s, which are fully taxable when you take distributions from them. So if you're taking distributions from your traditional IRA, you're going to pay tax on the full amount, which includes the principal and any growth. However, if you've been also putting money into your Roth accounts, like Roth IRAs or Roth 401(k)s, those distributions are not going to be taxable when you take distributions upon retirement age. With Roth accounts, you're not getting a deduction when you make the contribution originally. However, now the growth on these Roth accounts is tax free, the principle you've already paid taxes on, and so now you're going to take a distribution in retirement and not have to pay taxes on any of that. Whereas with the traditional accounts, like if you had a 401(k) or a traditional IRA through your employer, and you were making contributions, you were getting a tax break then. You were getting a deduction. So you weren't paying taxes on the amounts that you were contributing to these accounts. But now upon retirement, you're taking a distribution, and you're going to have to pay tax on the entire distribution amount plus any gains.