Tax Terms

Tax-Deferred Account

Definition

What is Tax-Deferred Account?

An account where tax on contributions, income, or gains is postponed until a later event.

Example in practice

Investment gains compound without current annual tax until withdrawal.

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Tax deducted at source from specified income payments before the recipient receives the balance.

Tax that may apply to gains from disposing of qualifying assets.

A public authority responsible for administering and collecting taxes.

The possibility of loss because broad market prices or rates move against an investment.

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