Dividends in IRAs are treated differently based on the type of IRA:Traditional IRA: Dividends are not taxed when earned but are taxed as ordinary income when withdrawn. Roth IRA: Dividends grow tax-free and are not taxed when withdrawn if rules are followed. For additional information, you can check out these TurboTax articles:Dividends in Tax-Advantaged Accounts - Dividends & IRA - scroll down 1 pageAre IRA or pension distributions taxable?

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Question

are ira dividends taxable?

Forum|Forum|1 year ago
February 8, 2025
1 reply
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SabrinaD2

Dividends in IRAs are treated differently based on the type of IRA:

Traditional IRA: Dividends are not taxed when earned but are taxed as ordinary income when withdrawn.
Roth IRA: Dividends grow tax-free and are not taxed when withdrawn if rules are followed.

For additional information, you can check out these TurboTax articles: