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 ?
Seniors may defer part or all of their property taxes on their personal residence if they qualify for the Senior Citizen Tax Deferral program.
Because he lived in a taxing jurisdiction that provided relief to seniors, Smith applied for and received a property tax deferral.
This is especially true in the case of deferred annuity products, which are typically purchased with a view toward both future income security and tax deferral.
The single most powerful feature of an annuity is tax deferral, according to Mitch Caplan, CEO of Jefferson National, not features like guaranteed income and riders.
ESOPs are especially attractive to owners of profitable businesses looking to transfer ownership to a qualified workforce in place while providing the owners a tax deferral under Sec.
According to Jefferson National's The Power of Tax Deferral survey, 96 percent of financial advisors say tax deferral is important to confront today's triple threat, and 86 percent of advisors expect that tax deferral will be more important in the future.
Three in four boomers say tax deferral is an important feature of a retirement investment.
I'm puzzled why there are not more discussions and articles about tax efficiency and investments, particularly when it comes to the issue of tax deferral.
the "solo-k," "uni-k," or "individual 401[k]")--can allow even larger contributions and, thus, even greater tax deferral.
Through the Seniors Property Tax Deferral Program, homeowners 65 and older can defer all or part of their residential property taxes through a low-interest home equity loan with the Alberta government.
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.
He owes no immediate income tax from the sale, thanks to the Section 1042 tax deferral.