Tax-Free
In one sentence: Income that is permanently not subject to tax.
What it means
Qualified Roth withdrawals, life insurance death benefits, and gifts are the clearest examples. 'Tax-free' is stronger than 'tax-deferred.'
In one sentence: Income that is permanently not subject to tax.
Qualified Roth withdrawals, life insurance death benefits, and gifts are the clearest examples. 'Tax-free' is stronger than 'tax-deferred.'