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That’s only fair, since people usually get a tax break for putting money into the account and the balances grow tax-deferred for many years.—
Liz Weston,
San Diego Union-Tribune,
26 July 2026 The money inside the account grows tax-deferred until it is withdrawn.—
Terry Savage,
Chicago Tribune,
26 July 2026 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 See All Example Sentences for tax-deferred