Types of tax-deferred investment accounts Traditional IRAs Tax-advantaged retirement accounts where contributions may be tax-deductible, and growth is tax-deferred until withdrawal., The earnings accrue tax-deferred and can be withdrawn after retirement when in a lower tax bracket. There are limited contribution amounts and penalties for withdrawing funds early. You might also consider a Roth 401 (k) which uses after-tax money for contributions but offers tax-free growth and tax-free withdrawals in retirement., Learn all about tax-deferred investments, including their definition, types, advantages, and disadvantages to make informed financial decisions., What Are Tax-Deferred Investments? When you have a tax-deferred investment option, you have an account that allows you to postpone paying your federal income taxes. Instead of paying the taxes upfront, you can wait until you actually withdraw money from the account. As a result, any earnings you make from your contributions are also tax-deferred., Here's how to use investments and accounts to create a strategy that can defer, manage, and reduce taxes., Understand tax-deferred investments: how they allow your money to grow by postponing taxes, and the implications of this financial strategy over time..