Business and Personal Finance Dictionary

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• AFTER-TAX INCOME
  
  After-tax income, sometimes called post-tax dollars, is the amount of income you have left after federal income taxes (plus state and local income taxes, if they apply) have been withheld. If you contribute to a individual retirement account (IRA), purchase an annuity, or invest in a taxable account, you are using after-tax income. In contrast, if you contribute money to an employer sponsored retirement plan or flexible spending account, you are investing pretax income.
  
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