Tax-Deferred Account
/ˈtæks dɪˌfɜrd əˈkaʊnt/
Definitions
- (n.) An investment or savings account where taxes on earnings are postponed until withdrawal, often used for retirement savings.
Contributions to a tax-deferred account grow without current tax liability until distributions begin.
Forms
- tax-deferred account
- tax-deferred accounts
Related terms
See also
Commentary
Usually used in retirement planning contexts; drafting should clarify the tax treatment timing to avoid ambiguity.
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.