tax-deferred

adjective TAX

Definition

› 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.

(Definition of tax-deferred adjective from the Cambridge Business English Dictionary © Cambridge University Press)