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Yes, you generally pay taxes on your 401(k) contributions and earnings, but the timing and tax rate depend on the type of 401(k) account you have. 1. Traditional 401(k): In a traditional 401(k), your contributions are made with pre-tax dollars, meaning you don't pay taxes on the money you contribute when you make the contribution. Instead, you'll pay taxes when you withdraw the money during retirement. The withdrawals will be taxed as ordinary income based on your tax rate at the time of withdrawal. 2. Roth 401(k): If you have a Roth 401(k), your contributions are made with after-tax dollars, meaning you've already paid taxes on the money you contribute. Therefore, your qualifying withdrawals during retirement will be tax-free, including the earnings. Keep in mind that withdrawing funds from a 401(k) before reaching the age of 59½ may result in a 10% early withdrawal penalty unless you meet certain exceptions specified by the IRS.