Paying taxes in the future for income earned in the current year, such as through an IRA, 401(k), SEP IRA or Keogh Plan.
The ability to save current taxes and defer that tax liability until a later date (typically retirement).
Taxes on accumulated earnings are postponed (deferred) until the earnings are withdrawn from a retirement plan, annuity, or other investment that provides for tax deferral. If the withdrawal is made before the individual reaches the age of 59½, tax penalities may be imposed.
The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
Postponement of taxes on gain. With annuities and qualified retirement plans, earnings are tax-deferred until received.
Tax deferral means that income taxes that would otherwise be due on employment or investment earnings are postponed until some point the future, often when you retire. Then tax is due on the amounts you withdraw, at the same rate you pay on your regular income. For example, if you contribute pretax income to a retirement savings plan, such as a 401(k) or 403(b), you owe no tax on the contributions or any earnings in the plan until you withdraw. In other plans, such as individual retirement accounts (IRA), the contribution may be taxable but the earnings are tax deferred.
The postponing of income taxes until a later date through various legal methods.
Delaying the payment of income taxes due on an account. Assets held in an employer-sponsored plan for the benefit of a participant are tax deferred until withdrawn. If the participant wishes to continue the tax deferral on these assets he can directly roll over the distribution to a Rollover IRA.
The ability to postpone paying current income taxes until a later date when the applicable income tax bracket may be lower.
Taxes are not paid on earnings until the money is withdrawn.
The money that accumulates in your annuity grows tax-deferred, meaning you do not pay taxes on it until you begin receiving annuity payments. The death benefit on your annuity is also taxable to your beneficiary.
To delay tax liability until some future date. For individuals this may be done by making investments such as IRAs, 401(k)s, SEP IRAs, or Keogh plans, where taxes are paid when funds are withdrawn. For a business entity, this may be achieved by taking accelerated depreciation of assets results to delay tax liabilities.
Postponement of payment of taxes, such as income tax, until a future date, when you may be in a lower tax bracket.
Postponing the payment of income taxes until some point in the future, often at retirement. Generally, the cash value growth inside life insurance is eligible for deferral, unless the amount of cash received through surrender exceeds the policy's tax basis. Any additional surrenders beyond the basis must be reported as taxable income. Taxes may be deferred on modified endowment and annuity contracts until the owner takes possession of the cash benefits.
A postponement (deferment) of reporting taxable income on earnings.
The postponement of taxes through a qualified retirement plan.
postponing taxes due on an amount invested and/or its earnings until they are taken as income
A method used to postpone current year taxes to a later year. This is typically done by recognizing income or a gain at a later time. It is important to remember that using tax deferral only delays tax liability, it does not eliminate it.