tax deferral
Owing taxes later
Tax deferral is the postponement of tax liability to a future date.
Contributions to retirement accounts like 401(k)s are the classic example—you don't pay income tax on the money until you withdraw it, often decades later.
Tax deferral lets your investments grow without annual tax drag.
The strategy assumes you'll be in a lower tax bracket when you eventually pay.
- IRATax-advantaged retirement fund
- annuityPeriodic fixed payment
- rolloverVehicle flipping accident
- 401(k)Tax-advantaged retirement savings account
- tax optimizationMinimizing legal payment obligations
tax shelter · Roth IRA · tax-deferred · capital gains · postpone · pension funds · nest egg · delay · tax year · tax bill · Uncle Sam · mutual funds · estate planning · tax loopholes · deferred compensation · municipal bonds · tax brackets · kick the can
tax deferraltax exemption
Freedom from governmental levies
tax-free status · tax avoidance · tax write-off · tax credit · tax abatement