There are many different investment options to choose from. One of those types is a tax deferred account. What that means is that any earnings from that account are paid at a later date, instead of paying them within the year that the earnings are accrued. One of the main benefits of tax deferment is the ability to save money during the present time period. Investors are allowed to choose between a few different account types and they have the option of putting a certain amount of pre-tax money into those accounts. This can allow the investor to actually lower his taxable income and can also qualify them for a lower income tax bracket, therefore saving money. Many people use tax deferred accounts to help save for retirement. The funds within the accounts are not taxed until a person begins to withdraw them. Examples of tax deferred accounts can include individual retirement accounts (IRAs), certain kinds of bonds and annuities.