Tax Terms
Tax-Deferred Account
Definition
What is Tax-Deferred Account?
An account where tax on contributions, income, or gains is postponed until a later event.
Example in practice
How This Looks in Practice
InvestmentAn asset or commitment of money made with the expectation of future income, growth, or both. gains compound without current annual tax until withdrawal.
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Related Terms
Tax Terms
Withholding Tax
Tax deducted at source from specified income payments before the recipient receives the balance.
Tax TermsCapital Gains Tax
Tax that may apply to gains from disposing of qualifying assets.
Tax TermsTax Authority
A public authority responsible for administering and collecting taxes.
Risk TermsMarket Risk
The possibility of loss because broad market prices or rates move against an investment.