Question: are withdrawals from an ira considered taxable income?
Answer: Key Takeaways. Contributions to traditional IRAs are tax-deductible, earnings grow tax-free, and withdrawals are subject to income tax. ... Early withdrawals (before age 59½) from a traditional IRA—and withdrawals of earnings from a Roth IRA—are subject to a 10% penalty, plus taxes, though there are exceptions to this rule ...