Ask Terry Questions Tax Deferred Account

Tax Deferred Account

By Terry Savage on February 23, 2022 | Social Security

Can I pay my TAXES ON my account and not withdrawal any of the monies I have accrued over its life?

Terry Says

You don’t pay takes on investments until you sell them (at long or short term capital gains rates) or on a retirement account until you withdraw (after age 59-1/2 to avoid a penalty) in which case it is all taxed as ordinary income.
But why sell if you can keep the money growing longer inside a tax-deferred account?

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