tax-deferred

[taks-di-furd]

adjective

1. noting or providing income that is not taxed until a later time.

Example Sentences

Consider a person who retires with only tax-deferred accounts: They lose strategic flexibility compared with those who diversify across taxable, tax-deferred, and tax-free buckets, which really allows us to optimize that lifetime tax rate.

Read more on Barron's

For example, many clients enter retirement with almost all of their money in tax-deferred accounts, and when the required minimum distribution hits them, their tax rate might spike, sometimes even higher than during their peak earning years.

Read more on Barron's

If they can instead pay for their medical expenses out of pocket, then the HSA becomes like a tax-deferred savings account that is even better than a Roth IRA.

Read more on Barron's

The money goes in tax-free, grows tax-deferred, and comes out tax-free, provided you use it for qualified medical expenses.

Read more on Barron's

To optimize your HSA, make annual contributions, but use non-HSA funds to pay for healthcare expenses so your money can grow tax-deferred, says Molly Reese Ward, an advisor with Equitable Advisors.

Read more on Barron's