Deferred Account

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Dictionary Says

Definition of 'Deferred Account'

An account that postpones tax liabilities until a future date. A deferred account refers to one where there is a deferral of tax, usually in accounts specifically designed for retirement, such as an Individual Retirement Account (IRA) in the U.S. Deferred accounts have proved to be enormously popular since their introduction, especially as fewer companies offer pensions and the burden of saving for retirement has shifted to individuals.
Investopedia Says

Investopedia explains 'Deferred Account'

The rationale behind deferred accounts is that they facilitate saving for retirement by enabling investments to grow tax-free until withdrawal. This tax-free compounding effect may generally enable investments in deferred accounts to grow faster than in taxable accounts. Another benefit of deferred accounts is that investments are only taxed upon withdrawal, which is usually assumed to be at retirement, when the contributor is presumably in a lower tax bracket.

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'Deferred Account'

  • Retirement Savings: Tax-Deferred Or Tax-Exempt?

    http://www.investopedia.com/articles/taxes/11/tax-deferred-tax-exempt.asp
    ... If you contribute $2,000 to a tax-deferred account you will receive a tax refund
    of $660 (0.33 x $2,000) and thus be able to invest more than the original ...

  • Not All Retirement Accounts Should Be Tax-Deferred

    http://www.investopedia.com/articles/retirement/08/annuities-tax-free.asp
    ... and corporate bonds pay regular interest that is either fully - or at least federally -
    taxable, unless it is paid into a tax-deferred account of some sort. ...

  • Top 4 Reasons To Save For Retirement Now

    http://www.investopedia.com/articles/retirement/07/noexcuses.asp
    ... 3. Saving in a tax-deferred account reduces your income taxes. 4. Saving in a
    tax-deferred account produces a compound effect on your return-on-investments. ...

  • 10 Tips For Achieving Financial Security

    http://www.investopedia.com/articles/retirement/06/10SecureRetirementTips.asp
    ... (For further insight, see Saving For Retirement: The Quest For Success.). Save as
    Much as You Can in a Tax-Deferred Account Contributing amounts earmarked for ...

  • Retirement Planning: Tax Implications And Compounding ...

    http://www.investopedia.com/university/retirement/retirement5.asp
    ... Consider two investments of $1,000 invested for 30 years, one in a tax-deferred
    account and the other in a taxable account. Assume ...

  • Tax Tips For The Individual Investor

    http://www.investopedia.com/articles/01/112801.asp
    ... Making your purchases through a tax-deferred account can save you a pile of
    money. Tax-deferred accounts come in many shapes and sizes. ...

  • Index-Linked Certificates Of Deposit: Upside Potential, Low Risk

    http://www.investopedia.com/articles/bonds/08/index-cd.asp
    ... To delay tax liability, the certificate can be purchased in a tax-deferred
    account, such as an individual retirement account (IRA). ...

  • Minimize Taxes With Asset Location

    http://www.investopedia.com/articles/tax/08/asset-location.asp
    ... For example, an investor with an asset mix of 40% fixed income and 60% equity will
    achieve the maximum benefit if the tax-deferred account holds 40% and the ...

  • Should I put money into a retirement account even if it isn't tax ...

    http://www.investopedia.com/ask/answers/05/savemore.asp
    ... When you contribute money to a tax-deferred retirement account, the money is deducted
    from your taxable income for the year in which the investment was made. ...

  • The Best Retirement Account For You - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/The-Best-Retirement-Account-For-You.aspx
    ... Annuities offer yet another avenue of tax-deferred savings, outside the scope of
    ERISA ... Of course, there is no single option or account that is best for everyone ...

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