Definitions
from The American Heritage® Dictionary of the English Language, 4th Edition
- adj. Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached.
- adj. Of or relating to the income that such an investment generates prior to becoming subject to taxation.
from Wiktionary, Creative Commons Attribution/Share-Alike License
- adj. Describing something that tax will not be due on until a later time (i.e. taxation is deferred to a later time).
Etymologies
Sorry, no etymologies found.
Examples
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The 401k is a tax-deferred account that allows workers to save for retirement, with companies often matching workers' savings up to a certain level.
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The capital gains, interest, and dividends earned within the account are tax-deferred.
Defending Social Security, Arnold Kling | EconLog | Library of Economics and Liberty
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Roughly $400 billion a year is contributed to various tax-deferred saving vehicles, and the amount is likely to grow with nominal income growth and the increased limits on tax-deferred contributions recently passed into law.
IRA's to the Rescue?, Arnold Kling | EconLog | Library of Economics and Liberty
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Kevin Hassett thinks that stock options are used because they are a form of tax-deferred compensation.
Stock Options as Tax Deferral, Arnold Kling | EconLog | Library of Economics and Liberty
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Boskin is describing future tax payments from IRA's and other tax-deferred savings accounts.
IRA's to the Rescue?, Arnold Kling | EconLog | Library of Economics and Liberty
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Boonton, it is entirely possible to pay a higher rate of taxation on a tax-deferred account than you would have paid while accumulating that account, due to the required minimum distributions at ages above 70 1/2 and the progressive income tax structure.
Defending Social Security, Arnold Kling | EconLog | Library of Economics and Liberty
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Jonathan Rikoon, a lawyer at New York's Debevoise & Plimpton LLP who advises private-equity-fund executives on estate planning, said Mr. Romney's reliance on a tax-deferred retirement plan for so much of his wealth could end up costing him.
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The so-called private-letter ruling was unusual: The Internal Revenue Service rarely allows tax-deferred retirement assets that someone has inherited and withdrawn as a lump sum to later be put into an inherited individual retirement account.
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You probably know the conventional wisdom: When spending retirement savings, drain taxable accounts first, to give the money in tax-deferred 401ks and individual retirement accounts more time to grow, and leave tax-free Roth IRAs for last.
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As the Roth's balance grows, the couple's tax-deferred retirement account will shrink—to about $550,000 from $700,000 over four years.
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