Tax-Deferred Savings Plan

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Dictionary Says

Definition of 'Tax-Deferred Savings Plan'

A savings plan or account that is registered with the government and provides deferral of tax obligations. Tax-deferred savings plans may defer taxable income earned within the account either until withdrawal or until a particular date.

They are used most commonly in retirement savings accounts such as IRAs, 401(k)s and RRSPs, but are also available for education savings plans and other accounts.

Investopedia Says

Investopedia explains 'Tax-Deferred Savings Plan'

In Canada, the Registered Retirement Savings Plan (RRSP) is an example of a tax-deferred savings plan. The RRSP shelters what would normally be taxable income earned within the account until withdrawal. All profits within the account, including interest, dividends and capital gains, are taxed as income only upon withdrawal.

Essentially, tax-deferred savings plans allow you to use the taxes which would have gone to the government for investing. In the end, the taxes are paid, but not before the funds were used to make more money.
Search results for

'Tax-Deferred Savings Plan'

  • Saving For Retirement: The Quest For Success

    http://www.investopedia.com/articles/retirement/05/061305.asp
    ... is better for you to pay tax on your savings before or after retirement. Saving
    in a tax-deferred vehicle, such as a Traditional IRA or 401(k) plan, may reduce ...

  • TFSA Or RRSP? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0211/TFSA-Or-RRSP.aspx
    ... are tax-deferred savings vehicles, these plans are ideal for taxpayers who expect
    to have a higher tax rate when the money is put into the plan versus when ...

  • Variable Annuities: The Do-It-Yourself Pension Plan

    http://www.investopedia.com/articles/retirement/09/variable-annuities-diy-pension-plan.asp
    ... employer-provided pensions.) Build Your Own Pension Plan Variable annuities can
    function much like 401(k) plans and other tax-deferred savings programs offered ...

  • Stretch Your Savings By Working Into Your 70s

    http://www.investopedia.com/articles/basics/06/workintoyour70s.asp
    ... Normally, investors who have used a tax-deferred retirement savings vehicle such
    as a Traditional IRA, 401(k), 403(b) or 457 plan must begin taking these ...

  • The Best Retirement Account For You - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/The-Best-Retirement-Account-For-You.aspx
    ... s; governmental employees will soon see a Roth option in the Thrift Savings Plan
    (TSP). Annuities offer yet another avenue of tax-deferred savings, outside the ...

  • Retirement Planning For 30-Somethings: Increasing Your Savings ...

    http://www.investopedia.com/university/retirement-30/retirement-303.asp
    ... to add those additional amounts to a non-tax-deferred retirement savings account,
    so ... that are added to an employer-sponsored qualified plan, you may ...

  • The Defined-Contribution Plan: A Flawed Concept

    http://www.investopedia.com/articles/retirement/12/defined-contribution-flaws.asp
    ... a way for workers to supplement their pensions with additional, tax-deferred personal
    savings. ... plans, because the amount put into the plan is defined ...

  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/review-questions.asp
    ... Retirement and College Savings Plans - Review Questions. ... Earnings grow tax-deferred. ...
    the following is an example of a qualified retirement plan EXCEPT: Defined ...

  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/employer-sponsored-retirement-plans.asp
    ... Savings Plans - Qualified Employer-Sponsored Retirement Plans. Under a qualified
    employer-sponsored retirement plan, all contributions grow tax-deferred. ...

  • Retirement Planning: Tax Implications And Compounding ...

    http://www.investopedia.com/university/retirement/retirement5.asp
    ... Compounding Your Tax Savings The power of compounding works ... while carrying out your
    retirement plan, since they will usually afford tax-deferred benefits. ...

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