tax-deferred

adjective

US
: not taxed until sometime in the future
a tax-deferred savings plan

Examples of tax-deferred in a Sentence

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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 Liz Weston, San Diego Union-Tribune, 26 July 2026 The money inside the account grows tax-deferred until it is withdrawn.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

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“Tax-deferred.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-deferred. Accessed 1 Aug. 2026.

Legal Definition

tax-deferred

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