After-Tax Deduction

What is After-Tax Deduction?

An amount is deducted from taxpayers’ wages after taxes (federal, state, and local income taxes, Social Security, and Medicare) are withheld. This is known as an after-tax deduction or post-tax deduction. State-specific after-tax deductions may include the following:

Why After-Tax Deduction Matters

  • Roth donations to 401(k)s

  • Pension plans supported by employers

  • 529 education savings programs

  • Union fees

  • Disability and several types of life insurance

  • Contributions to charities

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