Definitions for "tax deferral"
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Taxes on accumulated earnings are postponed (deferred) until the earnings are withdrawn from a retirement plan, annuity, or other investment that provides for tax deferral.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.