After-tax contribution - Definition

A contribution made to any designated retirement or any other account after taxes has been deducted from an individual's or companies taxable income. After-tax contributions can be made on a tax deferral, and on a non tax deferral Basis, pending on the type of account the entity is making contributions to. Contributions made to a tax deferral account require the individual to claim these contributions on their income tax filing each year, which entitles the tax payer to a refund based on their contributions at the going tax Rate.

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