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tax-deferred


Definition

Income whose taxes can be postponed until a later date. Examples include IRA, 401(k), Keogh Plan, annuity, Savings Bond and Employee Stock Ownership Plan.

Featured Tip

For those without a Retirement PlanIf you have no retirement plan at work, contribute to a traditional IRA or a Roth IRA. Your contributions to your 401(k) or IRA are tax-deferred, so that you don't pay any income taxes on your contrib ... Read more


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