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What does “tax-deferred earnings” mean?

April 26, 2017mean tax-deferred earnings

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What does “tax-deferred earnings” mean?

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With tax-deferred earnings, the interest paid to you on an investment-such as a fixed annuity-accumulates free of taxes until you, the investor, withdraw it. Withdrawals typically don’t occur until the investor retires and enjoys a lower tax rate than that of their prime earning years.