A taxable account is a type of investment account where any earnings, such as interest, dividends, or capital gains, are subject to taxes in the year they are realized. This means that when you sell an investment for a profit, you may owe taxes on that profit, depending on your income level and how long you held the investment. Unlike retirement accounts like 401(k)s or IRAs, which offer tax advantages, taxable accounts do not have restrictions on withdrawals or contributions. This flexibility makes them a popular choice for investors who want to access their funds without penalties or age limitations.