Financial Glossary

Here you’ll find clear and concise explanations of key financial terms and concepts. Our goal is to help you better understand essential topics across the financial world.

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August Jepsen August Jepsen

Tax Deferred

Tax deferred means postponing the payment of taxes on investment earnings, contributions, or asset growth until a future date, most often when you make withdrawals from an account like a traditional IRA or 401(k). This enables your money to grow and compound faster since taxes are not deducted annually, and you only pay taxes when you withdraw funds, usually in retirement.​

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