tax-deferred income


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Related to tax-deferred income: Tax deferral

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.
References in periodicals archive ?
Regardless of what income-tax bracket, tax-deferred income is almost always considered better than taxable.
This qualified asset generally consisted of loans made from the IC-DISC's accumulated tax-deferred income to its parent company or any other U.
taxpayers could accumulate tax-deferred income from offshore investments and, upon sale of the investment, recognize gain at the long-term capital gains tax rate.
Adding Capital Gains or Partially Tax-Deferred Income
He's paying too much in taxes and missing opportunities for tax-deferred income by failing to set up a retirement plan.
That means an additional $1,289,780 of tax-deferred income between ages 28 and 65.
This allowed the daughter to receive the benefits of continuous, tax-deferred income growth by "stretching" distributions over her life expectancy.
Life insurance is an excellent vehicle for funding SNTs because it provides guarantees, tax-deferred income, and a death benefit that if properly structured is free of federal income and estate taxes.
To Permit Petitioner to increase basis in the stock of the corporation on account of such tax-deferred income would produce a windfall to him.
New Income Summary information helps customers with their tax planning by showing the amount of taxable, tax-exempt or tax-deferred income they have earned on their investments for the statement period and year to date.
1366(a)(1)(A) and 1367 and increases their stock bases, or is some other type of tax-deferred income that does not increase basis.
Individual retirement accounts (IRAs) are, by design, supposed to be simple, uncomplicated vehicles by which to make tax-deferred contributions (and obtain tax-deferred income growth) into a retirement nest egg.