HomeGlossaryAfter-Tax (Post-Tax) Deduction
Deduction Terms

After-Tax (Post-Tax) Deduction

A deduction taken AFTER taxes — like Roth 401(k) contributions, union dues, or garnishments.

Full Definition

After-tax deductions are subtracted from your pay AFTER income taxes have been calculated. They do NOT reduce your current taxable income. Examples include Roth 401(k)/Roth IRA contributions (taxed now, tax-free in retirement), union dues, voluntary life insurance above $50,000, wage garnishments, and charitable donations via payroll. While they don't provide an immediate tax benefit, Roth contributions grow tax-free — a powerful long-term advantage.

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