Deferral of taxes

Deferral of Taxes
The deferment of making tax payments from this year to a later year. For example, money in an Individual Retirement Account (IRA) grows tax deferred until the money is withdrawn from the account.
See: IRA ...

Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of a life annuity. Deferred call A provision that prohibits the company from calling the bond before a certain date.

But it is true that a deferral of taxes is a benefit compared to paying the tax immediately. For example is taxes are deferred for five years on average then, on a present value basis, this is equivalent to a reduction in taxes.

Tax-advantaged life insurance product. Deferred annuities offer deferral of taxes with the
option of withdrawing one's funds in the form of life annuity.
Duration
The time it takes for a policy or annuity to reach maturity.

Tax-deferred investments in particular refer to retirement accounts which allow deferral of taxes on contributions, growth, or both; taxes are not paid until withdrawal of funds during retirement.
See 401(k), IRA, annuity.

DEFERRED ANNUITIES - Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes...
DEFERRED ANNUITY - Unlike an immediate annuity, which starts paying you income right after you buy it, ...

Deferred Annuities definition :
Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of a life annuity.
TSCTrade.com ...

The advantage of the completed contract method is that it normally achieves the maximum deferral of taxes.
The disadvantages of the completed contract method are:
The books and records do not show clear information on operations ...

To compare these two (simplified) cases, the company pays $200 in taxes in both instances. In the second case, it has deferred taxes to a much later period. The deferral of taxes to a later period is favorable according to the time value of money ...

See also: Deferral, Expense, Life annuity, Deferred annuities, Useful life