Tax-Advantaged Account
/ˈtæks ədˌvænˈteɪdʒd əˈkaʊnt/
Definitions
- (n.) A financial account that provides tax benefits, such as tax deferral or exemption, to encourage saving and investment.
Contributions to a tax-advantaged account can grow tax-free until withdrawal.
Forms
- tax-advantaged account
- tax-advantaged accounts
Related terms
See also
Commentary
Tax-advantaged accounts are often used strategically in estate planning and retirement funding; precise definitions and benefits vary by jurisdiction and account type.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.