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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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The government will invest the money in low-cost index funds that grow tax-deferred. Lauren Young, USA Today, 4 Dec. 2025 Earnings grow tax-deferred, and since Trump accounts include a mix of after-tax contributions, initial seed money and investment income, distributions are partially taxable. Jessica Dickler,kate Dore, Cfp®, Ea, CNBC, 2 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 Both pre-tax and Roth accounts grow tax-deferred, but beyond that, there are several differences. Kristin McKenna, Forbes.com, 25 Aug. 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 5 Dec. 2025.

Legal Definition

tax-deferred

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