Income on which the payment of taxes is postponed until some future date is called

Question

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The term used for income on which the payment of taxes is postponed until some future date is tax-deferred. This means that taxes will eventually have to be paid on the income, but the payment is delayed until a later time. It is commonly seen with retirement accounts like 401(k)s and IRAs, where taxes are postponed until the funds are withdrawn. Choice A (tax-delayed) and C (tax-postponed) are similar to tax-deferred but not the commonly used term. Choice D (tax-tardy) is not a correct term for the given context.

Income on Which the Payment of Taxes Is Postponed Until