does a traditional ira grow tax free 
no a traditional ira does not grow tax free contributions into a traditional ira receive favorable tax treatment and are often deducted from an employee s taxable income when it is time to withdraw earnings any growth on the investment is taxable in the meantime earnings are tax deferred this is the opposite treatment of roth iras where initial investments cannot be deducted from income but their growth can be withdrawn tax free at retirement 27the bottom lineone of the more common vehicles used for saving for retirement is the traditional ira a traditional ira allows savers to contribute money into a tax deferred vehicle using pre tax deductible contributions although this investment vehicle can t be accessed until 59 without taxes and penalties taxes on the growth of your investment are deferred until then 