Tax-Deferred Is Not The Same As Tax-Free

Tax-deferred is something that must eventually have taxes paid on it. On the other hand, tax-free will not need any tax payments made.

Photo by Olga DeLawrence on Unsplash

This is often misunderstood. To be clear, “tax-deferred” does not mean the same thing as “tax-free.” Tax-deferred is something that must eventually have taxes paid on it…