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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The investments are tax-deferred until the money is withdrawn in retirement. Michelle Fox, CNBC, 30 Mar. 2026 However, while the money grows in the accounts, the earnings are tax-deferred, functioning akin to an IRA. Jake Angelo, Fortune, 27 Feb. 2026 Contributions grow tax-deferred, and withdrawals used for qualified education costs are tax-free at the federal level. David Kudla, Forbes.com, 29 Jan. 2026 These plans, administered by the states, allow contributions to be invested and grow tax-deferred. Liz Weston, San Diego Union-Tribune, 11 Jan. 2026 These accounts permit up to $5,000 in annual after-tax contributions, and allow savings to grow tax-deferred until the owners make withdrawals. Hugh Cameron, MSNBC Newsweek, 5 Dec. 2025 The government will invest the money in low-cost index funds that grow tax-deferred. Lauren Young, USA Today, 4 Dec. 2025 But starting in 2026, for anyone earning more than $145,000 in the previous year, these catch-up contributions will no longer be tax-deferred. Kurt Knutsson, FOXNews.com, 29 Oct. 2025

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Cite this Entry

“Tax-deferred.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-deferred. Accessed 6 Apr. 2026.

Legal Definition

tax-deferred

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