Income earned inside the plan on the after-tax savings (excluding the contribution tax credit) is not taxed either while within the plan or on withdrawal.

If your marginal tax rate - Federal, state and city - is 40 percent, your after-tax savings in this case will be closer to $1,200.

Generally speaking, a homeowner will be better off with an alternative investment only if its after-tax return is higher than the after-tax savings available with a 15-year mortgage.

A total of 12,000 jobs will be eliminated in the merger, which is expected to lead to a $925 million after-tax saving.

Education savings accounts are like Roth I.R.A.'s, in which workers earmark after-tax savings for retirement and don't pay tax on earnings from interest, dividends or capital gains.

The provision allows after-tax savings of up to $2,000 a year to help pay private-school costs.

Kodak, which is based in Rochester, said that the retirements and partly offsetting replacements would produce after-tax savings of $150 million starting next year.

Aetna said yesterday that the retrenchment would provide after-tax savings of $50 million in 1991, $90 million in 1992 and $95 million a year after that.

The restructuring is intended to lower the food and tobacco giant's operating costs in 1994 and to create after-tax savings of about $600 million a year by 1997.

There should be some preference for savings in order to promote savings by the public and to treat after-tax savings fairly.