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 ?
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.
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.
Jefferson National's New Survey Shows Roughly Two-Thirds of Advisors Continue to Increase Use of Alternatives, Tactical Management and Tax Deferral in Current Market
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.
The Oregon House has approved a two-year extension for elderly and disabled homeowners who were kicked out of a property tax deferral program as a result of changes approved in 2011.
She said Thursday night that she has been working for more than 1-1/2 years to have the city create a tax deferral program.
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 financial benefits of this tax deferral can be considerable.
The Obama proposal to cut out or cut back tax deferral would mean a huge tax increase for American businesses with overseas operations--a total tax burden of 50 percent on foreign operations in some cases.
By the numbers: It doesn't take long for tax deferral to work
Section 6166 of the tax code is among several tax deferral provisions enacted by Congress in order to ease this burden.