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 money grows tax-deferred, and withdrawals are generally taxed under rules similar to a traditional IRA. Liz Knueven, CNBC, 7 July 2026 Their after-tax contributions will grow tax-deferred until a withdrawal is made, which can’t happen before the year the child turns 18. Jeanne Sahadi, CNN Money, 4 July 2026 The accounts are invested in low-cost stock index funds, grow tax-deferred, and can later be used for expenses such as education, buying a first home, or starting a business. Janelle Ash , Larry Fink, FOXNews.com, 2 June 2026 The savings build over decades as the Inherited IRA grows tax-deferred. James Lange, Forbes.com, 19 May 2026 See All Example Sentences for tax-deferred

Browse Nearby Words

Cite this Entry

“Tax-deferred.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-deferred. Accessed 11 Jul. 2026.

Legal Definition

tax-deferred

adjective
: not taxable until a future date or event (as withdrawal or retirement)
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster