Definition of "tax-deferred" [tax-deferred]

• Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached. (adjective)
• Of or relating to the income that such an investment generates prior to becoming subject to taxation. (adjective)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "The 401k is a tax-deferred account that allows workers to save for retirement, with companies often matching workers' savings up to a certain level."
• "The capital gains, interest, and dividends earned within the account are tax-deferred."
• "Roughly $400 billion a year is contributed to various tax-deferred saving vehicles, and the amount is likely to grow with nominal income growth and the increased limits on tax-deferred contributions recently passed into law."