We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Tax Deferred

Definition:

A type of tax break that lets you pay taxes later—as opposed to now.

For example, on some retirement accounts, capital gains and income aren't taxed until you start taking out money from the account as a silver-haired retiree. You don't avoid paying taxes (no one has that superpower); you just put it off.