2 months How are traditional IRA gains taxed? Reddit     

Hi,

I have been investing for 3 years but I have made several rookie mistakes and burnt a hole in my pocket. I have a question about traditional IRA. I can’t contribute to Roth now and I didn’t know that I could when I could. I wish I got on to r/stocks earlier so that I could benefit from you guys 🙂 Better late than never I guess.

Now, coming to traditional IRA, I have put 6000 this year and thankfully they have grown to 8000. I began wondering if it is worthwhile to rollover to Roth. I learnt by reading online that traditional is best if taxes are lower in retirement. Now, my question is the following:

Let’s say I don’t contribute any more to traditional and I manage to grow the 8000 to 50000 by retirement. Am I taxed capital gains tax on the gains (44000 in this example)?

Or, is it the case that any withdrawal from traditional IRA is considered as an income and is treated accordingly. I am visualizing this as if I have a job that pays as much as I want within the limits if my traditional IRA amount (no distinction between contributed amount and gains amount).

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