Tax-deferred meaning

tăks'dĭ-fûrd'
Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached.
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Of or relating to the income that such an investment generates prior to becoming subject to taxation.
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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 When the funds are withdrawn after the IRA owner reaches age 59⁄, taxes have to be paid on the withdrawn funds.
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Having tax due only until a later time; having the rax duty deferred.
adjective
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