The term "tax deferral" refers to the ability to pay taxes at a later date on otherwise currently taxable income.

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Tax deferral allows taxpayers to delay paying taxes on their taxable income until a later date, such as retirement or when they are in a lower tax bracket. This can provide financial benefits in the short-term by allowing for more money to be invested or spent, but can result in a larger tax bill when the deferred taxes eventually become due.

The Term "Tax Deferral" Refers to the Ability to Pay