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Examples on the Web These are called tax-deferred because (as the name suggests) taxes are deferred until the money is withdrawn. Kristin McKenna, Forbes, 21 Oct. 2024 The contribution is tax-deferred, which means someone who is in the 22% marginal tax bracket can contribute $100 while sacrificing $78 in take-home pay. Susan Tompor, Detroit Free Press, 19 July 2024 Because most retirement savings are tax-deferred (meaning the funds haven’t yet been taxed), this money often looks to Congress like the perfect remedy for revenue shortfalls—a big, juicy steak. Ed Slott, Fortune, 26 June 2024 More tools to save for retirement #1: Roth IRA’s are tax-deferred and in retirement earnings can be withdrawn tax-free. Roxana Popescu, San Diego Union-Tribune, 4 Jan. 2024 Contributions are pre-tax, your account can grow tax-deferred and withdrawals for qualifying medical expenses are tax-free. Liz Pulliam, San Diego Union-Tribune, 17 Dec. 2023 Contributions are tax-deductible and balances can grow tax-deferred, while withdrawals for qualifying medical expenses can be tax free. Liz Weston, San Diego Union-Tribune, 19 Nov. 2023 What’s more, the income from an IRA is either tax-deferred or tax-free. Laxmi Corp, The Salt Lake Tribune, 11 Sep. 2023 However, since the $1,800 is tax-deferred, the IRS would tax $38,200 — not $40,000. Michelle Singletary, Washington Post, 6 Sep. 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'tax-deferred.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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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 Nov. 2024.

Legal Definition

tax-deferred

adjective
: not taxable until a future date or event (as withdrawal or retirement)
Last Updated: - Updated example sentences
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