Definition of "tax-deferred"
  1. Subject to tax only at a future point in time, typically when a certain condition is met, such as the withdrawal of funds or reaching retirement age
How to use "tax-deferred" in a sentence
  1. Her savings account is tax-deferred, meaning she will only pay taxes on it once she retires and starts withdrawing money.
  2. A tax-deferred investment allows the investor to postpone tax payment until funds are withdrawn.
  3. The tax-deferred provision of the pension policy encourages workers to save for their future retirement.

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