tax deferral

Tax Deferral

A situation in which one is not required to pay taxes one would otherwise owe until some date in the future. Most of the time, tax deferral refers to contributions to an IRA or a 401(k) or other retirement instrument. Under many structures, one is able to make contributions from one's pre-tax income; this means that taxation is deferred until withdrawals are made, generally after retirement.

tax deferral

The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. At the corporate level, accelerated depreciation of assets results in a delay in tax liabilities. Tax deferral, which is legal, means a postponement, not an elimination, of a tax liability.
References in periodicals archive ?
* Allow both employee and employer contributions (and possible tax deductions), thereby maximizing contributions and tax deferral (not permitted in SEP plans)
Annuities provide valuable tax deferral opportunities.
Because of this difference, the benefits of tax deferral cannot be calculated in the same manner used to determine the benefits of an exclusion or deduction -- i.e., by simply multiplying the amount of the exclusion or deduction by the individual's marginal tax rate.
He owes no immediate income tax from the sale, thanks to the Section 1042 tax deferral. Bart receives the income from, and participates in any appreciation of, the $2 million worth of securities.
The Supreme Court had set aside a Gujarat High Court judgement on 17 January 2012 permitting Essar Oil to claim a sales tax deferral benefit from the Gujarat Government.
In their review, lawmakers should maintain a clear distinction between a self-supporting property tax deferral program and one that provides public assistance.
The city has a tax deferral program for taxpayers over 65 years old.
Tax deferral provides amazing results because it employs triple compounding: It pays interest on the principle, interest on the interest and interest on the taxes you that would have paid if you were in an investment that was taxed annually.
The IRI officials recalled that the insurance industry fought off a major effort to narrow annuity tax deferral in 1992.
New research shows that tax deferral can potentially increase returns on tax-inefficient assets by as much as 100 bps--without any subsequent increase in risk--simply by locating assets based on their tax treatment between taxable and tax-deferred vehicles.
Agreements between buyer and seller to specifically allocate installment payments can maximize tax deferral.
Section 6166 of the tax code is among several tax deferral provisions enacted by Congress in order to ease this burden.