What is the significance of before-tax and after-tax dollars?
Before-tax dollars are funds that are not subject to income tax at the time they are earned; rather, they become taxable when you retire, terminate County service, or when your beneficiary receives them upon your death. Payroll deductions and rollovers from your County 457 plan and/or other tax qualified plans are examples of before-tax dollars. The benefit of before-tax payroll deductions is that it reduces your taxable income.
