tax deferred

tax deferred definition - finance
A situation in which taxes will have to be paid at some point in the future, but they are not paid now. An example of a tax-deferred investment is an Individual Retirement Account (IRA), whose earnings accumulate tax free. When the funds are withdrawn after the IRA owner reaches age 59⁄, taxes have to be paid on the withdrawn funds.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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