Which of the following statements about the money invested in a traditional IRA account is correct?
A.it isn't taxed until it's withdrawn.
B.it's subject to double taxation.
C.it's taxed as you make deposits.
D.it isn't taxed.
Deposits into traditional IRAs are usually made with money that has already been taxed (withholding on paychecks).
Annuities, however, are usually built up with pre-tax money, so withdrawals from these are subject to income taxes.