Focus on the pronunciation of tax-deferred
English definition of “tax-deferred”
› used to describe a situation in which you pay tax for something at a later date than usual: With this plan, your contributions are tax-deferred, so that your savings grow faster than they would if some of the earnings went to pay taxes. The money can accumulate on a tax-deferred basis for years until needed. a tax-deferred account/arrangement/plan a tax-deferred investment/contribution tax-deferred adverb › With the 529 savings plans, the money grows tax-deferred.