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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If funds are not needed in any year, the HSA funds grow tax-deferred and roll over year to year and can be withdrawn anytime tax-free for qualifying medical expenses.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 These policies build cash value over time, which grows tax-deferred. Anatoly Iofe, Forbes, 6 Mar. 2025 As mentioned in previous columns, HSAs offer a triple tax break in that contributions are deductible, the account grows tax-deferred and withdrawals are tax-free for qualifying medical expenses. Liz Weston, San Diego Union-Tribune, 23 Feb. 2025 These accounts allow your money to grow tax-free or tax-deferred, depending on the type of account chosen. True Tamplin, Forbes, 20 Feb. 2025 Contributing pre-tax dollars reduces today’s taxable income while allowing money to grow tax-deferred until retirement withdrawals begin. Hunter Yarbrough, The Tennessean, 4 June 2024 The main draw of these accounts is that contributions grow tax-deferred, and withdrawals are not taxed if the money is used for qualified education costs. Shahar Ziv, Forbes, 15 Jan. 2025 These are called tax-deferred because (as the name suggests) taxes are deferred until the money is withdrawn. Kristin McKenna, Forbes, 21 Oct. 2024 The contribution is tax-deferred, which means someone who is in the 22% marginal tax bracket can contribute $100 while sacrificing $78 in take-home pay. Susan Tompor, Detroit Free Press, 19 July 2024

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“Tax-deferred.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-deferred. Accessed 26 Mar. 2025.

Legal Definition

tax-deferred

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