0 used to describe a situation in which you pay tax for something at a later date than usual: --
a tax-deferred investment/contribution
a tax-deferred account/arrangement/plan
The money can accumulate on a tax-deferred basis for years until needed.
With this plan, your contributions are tax-deferred, so that your savings grow faster than they would if some of the earnings went to pay taxes.
With either pre-tax or after-tax contributions, earnings from investments in a 401(k) account (in the form of interest, dividends, or capital gains) are tax-deferred.
With tax-deferred certificates this means at the point of surrender all interest earned in the account is reportable and taxable in that year.
Contributions are not tax-deductible, and earnings and growth accrue on a tax-deferred basis.
The taxpayer was a saver who was convinced to buy a deferred annuity because the inside buildup on such policies is tax-deferred.
The participant then has 60 days to complete the rollover of the funds to a qualifying account to preserve their tax-deferred status.
Money deferred into non-governmental 457 plans may not be rolled into any other type of tax-deferred retirement plan.
The overarching characteristic of the immediate annuity is that it is a vehicle for distributing savings with a tax-deferred growth factor.
In theory, such tax-deferred compounding allows more money to be put to work while the savings are accumulating, leading to higher returns.
