The meaning of TAX-DEFERRED is not taxed until sometime in the future. How to use tax-deferred in a sentence.
Tax-Deferred An investment in which some or all taxes are paid at a future date, rather than in the year the investment produces income. Tax-deferred investments in particular refer to retirement accounts which allow deferral of taxes on contributions, growth, or both; taxes are not paid ...
Define Deferred tax. Deferred tax synonyms, Deferred tax pronunciation, Deferred tax translation, English dictionary definition of Deferred tax. adj. 1. Of or relating to an investment that is not liable to taxation until income is withdrawn or an appoin
tax-deferred inTax topic From Longman Dictionary of Contemporary Englishˌtax-deˈferredadjectiveAmerican Englishnottaxeduntil a later timetax-deferred savingsExamples from the Corpustax-deferred•You may learn abouttax-deferredannuities, otherretirementplans, dollar-costaveragingand so on.•In atax...
Related to tax-deferred annuity:Nonqualified annuity,Single Premium Deferred Annuity tax′-deferred` annu′ity n. an annuity that enables one to purchase an insurance product that will earn interest, with the tax obligation deferred until withdrawals begin, usu. at retirement. ...
2 ENTRIES FOUND: tax–deferred(adjective) defer(verb) tax–deferredadjective Britannica Dictionary definition of TAX–DEFERRED US :not taxed until sometime in the future atax-deferredsavings plan
Tax-Deferred Accounts Tax-deferred accounts allow you to realize immediatetax deductionson the full amount of your contribution, but future withdrawals from the account will be taxed at yourordinary-incomerate.1The most common tax-deferred retirement accounts in the U.S. aretraditional IRAsand401(...
A deferred income tax is a liability on a balance sheet resulting from a difference in income recognition between tax laws and the company’s accounting methods.
However, it's important to note that there are often financial penalties for withdrawing funds from tax deferred accounts before a certain amount of time has passed, making tax deferred investments better for long-term investors. [InvestingAnswers Feature: Why You Shouldn't Play it Safe in ...
Learn the definition, purpose, and examples of deferred income tax in finance. Understand its role in financial planning and accounting.