After-Tax Contributions

• After-tax contributions are funds available to you after required taxes have been paid. For example, your paycheck reflects the net value after your employer withholds applicable income taxes.
  
  

Types

• You can designate an after-tax contribution to your Roth IRA by salary deduction if your employer allows that. You may also withdraw funds from your savings account to fund your Roth IRA. Contributions must meet certain adjusted gross-income requirements.
  
  

Warning

• Although you may use savings to contribute to your IRA, your earned income must equal or exceed the dollars you contribute. For example, if you use $3,000 from your savings to add to your Roth IRA, you must report at least $3,000 in earned income for the tax year applicable to your contribution.