tax-deferred

adjective

US
: not taxed until sometime in the future
a tax-deferred savings plan

Examples of tax-deferred in a Sentence

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Parents or guardians of babies born between 2025 and 2028 who open an account, which is tax-deferred, will receive the $1,000 initial deposit from the Treasury. — Jessica Dickler, CNBC, 31 Aug. 2026 Money grows tax-deferred, and account holders pay taxes on withdrawals. — Jessica Lipscomb, Miami Herald, 14 Aug. 2026 Traditional retirement accounts allow investments to grow tax-deferred, but every future withdrawal may be taxable. — D. Scott Kenik, Forbes.com, 31 July 2026 That’s only fair, since people usually get a tax break for putting money into the account and the balances grow tax-deferred for many years. — Liz Weston, San Diego Union-Tribune, 26 July 2026 See All Example Sentences for tax-deferred

Rhymes for tax-deferred

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tax-deductible
tax-deferred
tax disc
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Cite this Entry

“Tax-deferred.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax-deferred. Accessed 3 Sep. 2026.

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Legal Definition

tax-deferred

adjective
: not taxable until a future date or event (as withdrawal or retirement)
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