Yes income other than W2 are taxable but not at the same rate (i.e. long term capital gains). Trad IRA withdrawal are taxed at income tax. if I make $150k now and by age 50 most of my net worth are in non liquidized assets, investment and business holdings, and I reinvest my dividends without realized gains, then i can control my realized gains at retirement, i.e. 50k a year withdrawal from trad IRA plus 100k from long term capital gains but the tax will be lower than the 150k im paying full income tax on now
