Meaning of tax-deferred annuity

tax'-de•ferred annu'ity

Pronunciation: (taks'di-fûrd"), [key]
  1. an annuity to which teachers and other employees of nonprofit organizations may contribute, taxes to be deferred until withdrawal, usually at retirement.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.