tax-deferred
Pay the IRS later
Tax-deferred describes income or investment gains that aren't taxed until withdrawn at a later date.
Retirement accounts like 401(k)s and traditional IRAs are tax-deferred: contributions reduce taxable income now, but withdrawals in retirement are taxed as ordinary income.
The tax-deferred growth allowed her investments to compound faster.
Tax-advantaged retirement savings account
- IRATax-advantaged retirement fund
- RothIRA permitting tax-free withdrawals
- pensionRetiree's ongoing benefit
- annuityPeriodic fixed payment
403(b) · SEP-IRA · superannuation · employer-sponsored · non-qualified
Before levies apply
- contributionSomething given to help
- rolloverVehicle flipping accident
- matchGame between opponents
- catch-upReaching others' level
Elements merging progressively
- earningsMoney gained from work
- appreciationRecognition of worth
- accumulationCollected mass over time
- interestAttention, stake, or fee
dividends · reinvestment · accrual · principal · yield · returns
Protected place or structure
- deductionConclusion from premises
- exemptionRelease from requirement
- after-taxMinus government withholdings
- conversionAct of changing states
Act of taking away
- distributionAllocation across recipients
- penaltyPunishment for wrongdoing
- lump-sumEntire amount together
- annuitizationConverting capital to periodic payments
Designated asset receiver
- inheritanceProperty received from ancestors
- estateProperty and grounds
- legacyWhat's passed down
401(k)
Tax-advantaged retirement savings account
- IRATax-advantaged retirement fund
- RothIRA permitting tax-free withdrawals
- pensionRetiree's ongoing benefit
annuity · 403(b) · SEP-IRA · superannuation · employer-sponsored · non-qualified
pre-tax
Before levies apply
- contributionSomething given to help
- rolloverVehicle flipping accident
- matchGame between opponents
compounding
Elements merging progressively
- earningsMoney gained from work
- appreciationRecognition of worth
- accumulationCollected mass over time
interest · dividends · reinvestment · accrual · principal · yield · returns
shelter
Protected place or structure
withdrawal
Act of taking away
- distributionAllocation across recipients
- penaltyPunishment for wrongdoing
- lump-sumEntire amount together
beneficiary
Designated asset receiver
- inheritanceProperty received from ancestors
- estateProperty and grounds
- legacyWhat's passed down
- retirementretirement, retire, retirement age, retirees, retirement income
- tax strategiestax shelters, tax planning, tax avoidance, tax breaks, write-offs
- tax terms1040, W-2, 1099, W-4, tax refund
- taxessales tax, income tax, estate tax, excise tax, corporate tax
- retirement plans401k, IRA, Roth IRA, 403b, defined benefit
- retirement savingsretirement savings, retirement funds, 403b, retirement account, retirement fund
tax-deferredtaxable
Subject to government levy
pre-tax · after-tax · taxable income · ordinary income · withholding
tax-deferredtax-exempt
Free from taxation
tax-free · non-taxable · taxable · tax-advantaged · tax-sheltered
taxing, defer, taxes, taxation, deferral, deferred, deferment, taxable, untaxed