This measure opened the issue of what to do about slavery in border states that had not seceded or in areas that had been captured by the Union before the proclamation. In 1864, an amendment abolishing slavery passed the U.S. Senate but died in the House as Democrats rallied in the name of statesâ rights.
The IRS sets limits on after-tax contributions to your IRA. When it comes to retirement plans, a penny saved is not only a penny earned. Thanks to generous tax deductions and other government subsidies, it is also a penny invested. This holds true even when you invest after-tax money into an IRA.
You then put $5,000 into IRA, but there is no tax deduction. You end up contributing money on which tax has already been paid (hence the term post-tax), but you will NOT owe income tax when eventually you take moeny out of your IRA. Finally, answer to your question. There are two types of IRA: traditional IRA and Roth IRA. Contributions to Roth IRA are always post-tax. Contributions to traditional IRAs are usually pre-tax but sometimes are post-tax. By the way, post-tax traditional IRA are usually a bad idea. Michael Plaks, EA, Houston TX www.MichaelPlaks.com