Eventually you'll have to pay tax on your distributions from that account, including all the earnings that build up over the years. (fairmark.com)
Tax - advantaged retirement plans such as 401 (k) s and IRAs (Traditional or Roth) are considered tax shelters because they allow individuals either to contribute pretax dollars, get tax - deferred growth on their investments and pay tax on distributions in retirement — or contribute post-tax dollars, get tax - deferred growth and take tax - free distributions in retirement. (traditionalira.com)