For example, the penalty is only partly applied when it comes to after-tax money in 401(k)'s.

Furthermore, because after-tax money is used, there are no investment limits.

It would allow parents to put $2,000 of after-tax money into education savings accounts for each child.

In most other states, deposits to college savings plans are made with after-tax money.

This is obvious for the first two, since you put after-tax money in, and pay no taxes on the money withdrawn.

A. They need to be disciplined about setting aside after-tax money.

The income tax is taken "off the top", so the individual is left with $80 in after-tax money.

Look at the following example to see the difference in after-tax money that the owner receives.

"If you say to a man who makes $100,000 that he owes $25,000 in child support, that's a lot of after-tax money," he said.

Though they would use after-tax money for the deposits, interest would accumulate tax free.