Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached.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 When the funds are withdrawn after the IRA owner reaches age 59⁄, taxes have to be paid on the withdrawn funds.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.
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Tax-deferred Sentence Examples
In my view, long term tax-deferred compounding is where real wealth is created.
An Individual Retirement Account (IRA) offers you a tax-deferred option to save for retirement.
Modified guaranteed annuities provide tax-deferred earnings for a set period of time.
Along with providing for your future, a 401K offers additional benefits such as an immediate tax deduction, tax-deferred growth on your savings and, in many cases, a matching contribution from the company you work for.
Traditional IRAs present opportunities for tax-deferred growth, which means you don't pay taxes on your investment until you make a withdrawal.