Tax-Deferred Account

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Tax-Deferred Account

1. See: 401(k).

2. See: Traditional IRA.
References in periodicals archive ?
On the other hand, if the individual withdrew $50,000 from a tax deferred account and $50,000 from a tax-free or fully taxable account, which doesn't count as earned income, the investor would be in the 15 percent tax bracket.
In short, whatever gains are not from a tax deferred account, such as an IRA or 401k, is fair game for the Internal Revenue Service.
Through the program, both employees and employers may invest up to $6,000 a year in a tax deferred account and business owners may deduct matching contributions and receive additional tax savings.
Hom said the Schwab 1000 Fund can serve as the core holding for many investors' portfolios and may be appropriate for taxable accounts as well as tax deferred accounts such as IRAs and 401(k).
Tax Wise Retirement Distribution Planning suggests the conventional sequence for tapping retirement assets -- access taxable accounts (such as a taxable savings account) first, partially tax deferred assets (such as stock or a mutual fund held outside of an annuity or qualified plan) second, and tax deferred accounts (an IRA, annuity or qualified retirement plan) last -- may not be the most economical course for asset longevity or maximum wealth transfer.
Basically, there is now an increased incentive to hold dividend-paying and higher-risk/return long-term equity investments outside of tax deferred accounts, and ordinary income, safety-oriented investments (such as taxable bonds, certificates of deposit, treasuries, etc.