tax deferred
Payment delayed legally
Tax deferred describes income or investment gains that aren't taxed until a later date, typically at withdrawal.
Retirement accounts like 401(k)s and traditional IRAs are tax-deferred vehicles—contributions reduce taxable income now, but you pay taxes when you take the money out: The growth in your tax-deferred account compounds without annual tax drag.
- retirementLeaving the workforce permanently
- golden yearsLater life stage
- 401kEmployer-sponsored retirement savings
- IRATax-advantaged retirement fund
- savingsAccumulated money kept
tax shelter · annuity · compound · growth · nest egg · rainy day fund · contributions · employer match · traditional · rollover · penalty · early withdrawal · withdrawal · required minimum · vesting · pretax · tax bracket · paycheck
- retirementretirement, retire, retirement age, retirees, retirement income
- retirement savingsretirement savings, retirement funds, 403b, retirement account, retirement fund