tax-deferred

adjective

US
: not taxed until sometime in the future
a tax-deferred savings plan

Examples of tax-deferred in a Sentence

Recent Examples on the Web
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That income may then grow either tax-deferred (with a traditional IRA) or tax-free (with a Roth IRA). Ryan Barone, Forbes.com, 2 June 2025 Earnings grow tax-deferred, and qualified withdrawals are taxed at the long-term capital-gains rate. Annie Nova,kate Dore, Cfp®, Ea,lorie Konish,jessica Dickler,greg Iacurci,ana Teresa Solá, CNBC, 22 May 2025 Contributions would grow tax-deferred, and could be used for various life expenses, including education or purchasing a home. Nick Mordowanec, MSNBC Newsweek, 14 May 2025 Contributions are either pre-tax Traditional 401(k) or post-tax (Roth 401(k), allowing your money to grow tax-deferred or tax-free, respectively. David Rae, Forbes.com, 5 May 2025 To compare, after-tax deposits grow tax-deferred, meaning your returns incur regular income taxes when withdrawn. Kate Dore, Cfp®, Ea, CNBC, 1 May 2025 Tax Risk Most retirement savings, such as 401(k)s or traditional IRAs, are tax-deferred. Robert Cannon, Forbes.com, 15 Apr. 2025 The deferred amounts grow tax-deferred until withdrawal, typically at retirement or a predetermined date. Anatoly Iofe, Forbes.com, 7 Apr. 2025 If funds are not needed in any year, the HSA funds grow tax-deferred and roll over year to year and can be withdrawn anytime tax-free for qualifying medical expenses. Lina Storm, Forbes, 21 Mar. 2025

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“Tax-deferred.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-deferred. Accessed 6 Jun. 2025.

Legal Definition

tax-deferred

adjective
: not taxable until a future date or event (as withdrawal or retirement)
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