Tax-Deferred Account

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Tax-Deferred Account

1. See: 401(k).

2. See: Traditional IRA.
References in periodicals archive ?
One is to invest as you did before you had children, with assets in taxable and tax deferred accounts, under your own names.
The standard advice has been that investments that throw off income taxed at the ordinary income rate belong in tax deferred accounts where investments taxed at more favorable long-term rates belong in taxable accounts.
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.
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.
For instance, the client's tax rate should be considered, he says, adding that, in most cases, it makes sense to draw from taxable accounts before dipping into tax deferred accounts.
The PIMCO Funds Asset Allocation Series offers institutional and retail investors a logical investment alternative, especially for their tax deferred accounts.