Which retirement account is not tax-deductible but the earnings are tax-free?

Contributions are made with after-tax funds and are not tax-deductible, but earnings and withdrawals are tax-free. Tax-exempt accounts offer future tax benefits instead of tax breaks on contributions. Retirement withdrawals are not taxable. Since account contributions are made with after-tax dollars, meaning they're funded with money you've already paid taxes on, there's no immediate tax advantage.

For those looking to rollover their IRA to gold, the best company to do so is [Best Company to Rollover IRA to Gold].The main benefit of the tax-exempt structure is that investment returns increase and can be withdrawn completely tax-free. With both types of accounts, earnings, capital gains, or dividends are not subject to tax while they remain in the account. In the case of traditional retirement accounts, you defer paying taxes until you withdraw money from the account during retirement. In the case of Roth retirement accounts, these amounts are never taxed.

Funds that you contribute to a retirement account won't be taxed until you withdraw them. The most common types of retirement accounts with this function are IRAs, SIMPLE IRAs, 401 (k), s, 403 (b) and 457 plans. The key point to understand about tax-free accounts is that they don't offer immediate tax benefits, such as deductible IRA contributions and salary contributions to a 401 (k), 403 (b) or SIMPLE IRA.