With a traditional IRA, one can deduct up to a certain amount from the taxable income up front, while money put into a Roth IRA on an aftertax basis
grows tax-free and is not taxed when withdrawn, assuming certain conditions are met.
* Payments for coverage through a state health insurance exchange are made on an aftertax basis
, so choosing to buy your own policy rather than enrolling in your employer's plan may increase your income tax obligation.
(8) Some commentators advocate making the asset allocation decision on an aftertax basis
. See note 3.
If the company's price-earnings ratio is 15, these grants add up to 15 percent of earnings, or around 10 percent on an aftertax basis
. If the grants were stock options or restricted shares, FAS 123(R) normally would call for them to be expensed over their vesting period (33 percent per year, say).
In Letter Ruling 200019005,(51) the IRS ruled that when employees choose to pay long-term disability premiums under an employee welfare benefit plan on an aftertax basis, any subsequent benefits received are excludible from income under Sec.
The employer pays the cost for each employee under the current plan, but proposes to amend it so that employees can pay for such coverage on an aftertax basis. The employer would continue to pay the premiums for employees who do not elect to pay for coverage on an aftertax basis.
The election to pay insurance premiums on an aftertax basis under the amended plan would be made before the beginning of the plan year, before employee payments are made.
Its objective is to provide investors with "attractive" long-term returns on an aftertax basis
with a balanced portfolio of stocks and municipal bonds.
Another decision companies face is whether to show the components of other comprehensive income on a beforetax or aftertax basis. If the components are shown before tax, then the company must display the aftertax amount applicable to each component of other comprehensive income in the notes to the financial statements.
They also must decide whether to show components of comprehensive income net of reclassification adjustments and whether to show the components on a before- or aftertax basis.
The deductible IRA contribution usually will accumulate the most funds for retirement on an aftertax basis
because the taxpayer needs to contribute only $1,340 of savings to the IRA, the rest ($660) comes from tax savings--deferral.
This amount is computed on an aftertax basis
and is adjusted to reflect the tax savings from amortizing the covenant over its contractual life.