The article may contain affiliate links from partners. The words, opinions, and reviews are our own. Learn how we make money to support our financial wellness mission.

Tax deferral is defined as the feature of an investment in which taxes due on the principal and/or earnings are postponed until funds are withdrawn, often at retirement.

Tax Deferral Example

When you defer taxes, you postpone paying them until a later date. Tax law permits you to defer taxes on the interest you earn in certain situations.

Main Menu