Question

katie earns $2,000 per period. she contributes 6% per pay period to a 401(k) plan, $30 per pay period to a charitable contribution, $90 per pay period to union dues, and $150 per pay period to a section 125 qualified insurance plan offered by her employer. what is the amount of her post-tax deductions

Answer 1

The amount of her post-tax deductions is $120.

What is post-tax deductions?

Amount automatically taken out of an employee's post-tax income is known as an after-tax deduction. This sum represents what is left over after payroll taxes and pre-tax deductions from paychecks have been applied.

Post-tax deductions are made from an employee's paycheck following the withholding of all necessary taxes. Post-tax deductions don't cut the overall tax burden for the person because they lower net compensation rather than gross pay.

An after-tax 401(k) contribution is made exactly as the name implies, after taxes have been paid. Earnings increase tax-deferred, much like a Roth 401(k). Contrary to a Roth 401(k), the account's profits are taxed when they are withdrawn. The after-tax choice existed before the Roth 401. (k).

To learn more about post-tax deductions visit:

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