What would you like to do?

What are the Advantages of tax deferred retirement plans?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

First off, there are very few, if any, disadvantages. Advantages include the basic concept that paying taxes later, in this case frequently much later, is much bettr than paying them now. Add to it, the taxes you don't pay you get to invest and earn a return on. Those earnings are generally tax deferred too. Special status of most qualified deferred plans means they are exempt from attachment or seizure, even during a bankruptcy. (Security of savings). There are generally methods to obtain hardship or special purpose early withdrawals. If the funds pass to your heirs, upon death, before or after you start withdrawing them, they generally pass without being taxed too.
Thanks for the feedback!

What is deferred tax?

Answer   Deffered Tax is the amount the payment of which you delayed to pay in future. There are many reasons for deffered taxation. There are so many expanses and incom

How are deferred tax assets and deferred tax liabilities derived?

Basically, the book tax provision has 2 part - current (what you will pay this year) and deferred (what you will pay in some other period. It is determined using the financial

Advantages and disadvantages of retirement plan?

  Depends on what type of retirement plan, for specifics.   But, "retirement plans" are usually covered by two major laws (ERISA and PPA) which grant certain tax advant

Is there a deduction for tax-deferred retirement plan on Form 1040?

This response is for tax year ending 2009 only: Yes there is. It usually is placed in on the standard 1040 in line #32. "IRA deduction" be sure to read page 31 of the instruct

What is a tax deferred plan for employees?

This a retirement plan that you can choose to have amounts withheld from your earnings and the amounts will not reported in your gross wages in box 1 of the W-2 tax form and w

What are deferred taxes?

DEFERRED taxes MEAN not paying certain types of taxes currently. The payment of taxes on certain income or different asset at some period of time in the future. The buying and

What is the advantage of retirement planning?

Whether you are recently retired or entering the workforce, T. Rowe  Price can help you achieve your retirement saving goals. Our  investment products and guidance make reti