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Tax-Deferred Income
(redirected from tax-deferred)

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Tax-deferred income
Dividends, interest, and unrealized capital gains on investments in an account such as a qualified retirement plan, where income is not subject to taxation until a withdrawal is made.

Tax-Deferred Income
Any income that one earns but does not receive until a later date, resulting in a situation in which taxes on the income are not paid until later. Common examples of tax-deferred income fall into two broad categories. The first is income in certain retirement accounts; the account holder is not liable for taxes until funds are disbursed. The second is the capital gain on some bonds such as U.S. Treasury securities; taxes on these gains are deferred until maturity. It is important to note that tax-deferred income is not the same as tax-free income, which has no tax liability at all.

tax-deferred income
The income that is earned but that is neither received nor taxed until a later date. For example, interest earned on U.S. Treasury bills is received and taxed at maturity. Likewise, U.S. savings bonds provide appreciation of value on which holders may defer paying taxes until the security is cashed in. Compare tax-free income, tax-sheltered income.


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In fact, if you look at the numbers--and consider how little you're going to get from Social Security (for most of us, the equivalent of roughly $13,000 a year)--you'll realize that if you're not participating in some other kind of tax-deferred retirement plan, you can't afford not to have an IRA.
Life insurance is a preferred vehicle for funding these trusts because it provides guarantees, tax-deferred income and a death benefit that can be free of federal income and estate taxes.
Investor select provides flexibility of death benefit and premiums combined with tax-deferred growth of cash values tied to the market performance of the sub-accounts.
 
 
 
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