Which of the following is a tax deferral strategy?

Registered accounts represent a tax deferral strategy because they allow individuals to defer taxes on investment earnings until withdrawals are made. For instance, in accounts such as a 401(k) or an Individual Retirement Account (IRA), contributions may be made pre-tax, meaning that the investments within these accounts can grow without being taxed annually. This deferral can result in a significant tax advantage, as the individual may be in a lower tax bracket upon retirement when they start taking distributions, thus reducing their overall lifetime tax burden.

In contrast, tax-exempt bonds provide tax-free interest income but do not defer taxes on the principal investment; estate planning and gifting strategies often focus on minimizing taxes rather than deferring them, and immediate and irreversible ownership transfer suggests a permanent change in asset ownership, typically resulting in tax consequences at the time of transfer. Hence, registered accounts specifically embody the principle of tax deferral, allowing for growth and accumulation without immediate tax implications.