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What is meant by the term, tax-deferred?

April 26, 2017meant tax-deferred term

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What is meant by the term, tax-deferred?

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The term “tax-deferred” refers to payroll deductions which are not subject to federal or state taxes at the time of the deduction. Taxation of the income is delayed or “deferred” until the money is withdrawn from a retirement plan account at the time of retirement.