An Inside Look at Retirement Living The slideshow presentation that you would like to view is too large for your current screen resolution. Click here to view to view the slideshow at full resolution. Launch Presentation » Share | Have A Question About This Topic? Name Email Address Question Thank you! Oops! Related Content Annuity Comparison This calculator compares a hypothetical fixed annuity with an account where the interest is taxed each year. Paying Tax Later Doesn't Always Mean Paying Less 401(k) savings are taxed as ordinary income when funds are withdrawn. What If You Get Audited? The chances of an IRS audit aren't that high. And being audited does not necessarily imply that the IRS suspects wrongdoing.