Tax-Deferred
TaxesAn investment whose earnings are not taxed until funds are withdrawn, such as a Traditional IRA or 401(k).
Example
Example: On a $75,000 salary, understanding tax-deferred could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how tax-deferred works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.