Tax-Deferred Retirement Plan

Tax-Deferred Retirement Plan

A retirement investment plan in which a contributor does not pay taxes on contributions until after withdrawal at retirement. That is, one places a portion of his/her pre-tax income into a retirement account that allows it to be invested. Taxation is deferred until withdrawal from the account following retirement. Presumably, one's tax rate will be lower after retirement because one's income is usually lower after retirement. Common examples of tax-deferred retirement plans include IRAs and traditional 401(k)s. Some employers make matching contributions to these plans.
References in periodicals archive ?
As a general rule, you should try to hold assets with the least tax efficiency in your tax-deferred retirement plan.
Co If you inherit a tax-deferred retirement plan, consider rolling it into an inherited IRA.
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.
But should you put dividend-paying stocks and stock funds inside a tax-deferred retirement plan, such as an IRA or a 401(k)?
This tax bite doesn't apply to investors buying fund shares for a tax-deferred retirement plan.
Although a tax-deferred retirement plan like a 401-K, 403 (b), or Individual Retirement Accounts (IRA) can be a good source of retirement income for you, it may prove expensive to pass it to your heirs through your estate plan.
It is not clear why some respondents would answer "no" to either of the two main questions on retirement coverage and subsequently answer "yes" to the question on participation in a tax-deferred retirement plan.
Money for the stock could go from the company treasury into a tax-deferred retirement plan for the owner.
One prominent tax-deferred retirement plan is called a tax-deferred annuity (TDA).
The Solo(k) is a tax-deferred retirement plan specifically designed for individual business owners or self-employed persons.
Forty-one percent did not understand the tax implications of making a withdrawal from a Registered Retirement Income Fund (RRIF), a Canadian tax-deferred retirement plan.
Generally, the maximum catch-up amount is two times the basic annual limit, but only to the extent a participant has not previously deferred the maximum amount under an eligible plan or similar tax-deferred retirement plan.