{"id":20317,"date":"2017-06-14T12:00:00","date_gmt":"2017-06-14T12:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2021-07-07T09:57:55","modified_gmt":"2021-07-07T14:57:55","slug":"ira-interest-tax","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/retirement-income\/ira-interest-tax\/","title":{"rendered":"Am I subject to IRA interest tax on the interest my IRA earns, or am I only subject to IRA interest tax if I take an IRA"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-53455 alignright\" src=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/IRA-interest-income-300x200.jpg\" alt=\"IRA interest\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/IRA-interest-income-300x200.jpg 300w, https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/IRA-interest-income.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>You aren&#8217;t subject to IRA interest tax on the interest your IRA earns while it remains in your account. Instead, you&#8217;ll be responsible for any IRA interest tax when you take distributions from the traditional IRA.<\/p>\n<p>If you have Roth IRA distributions, they&#8217;re tax-free if both of these are true:<\/p>\n<ul>\n<li>You held the account for five years.<\/li>\n<li>You take the distribution for one of these reasons:\n<ul>\n<li>Over age 59 1\/2<\/li>\n<li>Death or disability<\/li>\n<li>Using the distribution as a qualified first-time homebuyer (up to a $10,000 lifetime limit)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>More Help with IRA Interest Tax<\/h2>\n<p>Investment income poses special considerations come tax time. Whether you&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-offices\/local-offices\/#!\/en\/office-locator\/\">make an appointment<\/a>&nbsp;with one of our knowledgeable tax pros or choose one of our&nbsp;<a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">online tax filing<\/a>&nbsp;products, you can count on H&amp;R Block to find every tax credit and deduction you are entitled to.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You aren&#8217;t subject to IRA interest tax on the interest your IRA earns while it remains in your account. Instead, you&#8217;ll be responsible for any IRA interest tax when you take distributions from the traditional IRA. If you have Roth IRA distributions, they&#8217;re tax-free if both of these are true: You held the account for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":53455,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,48],"tags":[],"class_list":["post-20317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income","category-retirement-income"],"acf":[],"yoast_head":"<title>IRA Interest Tax | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Learn more about IRA interest tax with help from the tax experts at H&amp;R Block.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hrblock.com\/tax-center\/income\/retirement-income\/ira-interest-tax\/\" \/>\n<meta property=\"og:locale\" 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