Tax-deferred refers to investments for which taxes are not paid until funds are withdrawn, rather than paying taxes upfront when the contribution is made. With tax-deferred accounts, your contributions are typically deductible now, and you’ll only pay applicable taxes on the money you withdraw in retirement.
Financial terms can be confusing, and it can be difficult to know how they apply to you and your specific situation. Please reach out any time we can help you learn more and strategically plan to optimize your retirement planning.
