Taxpayers who make after-tax contributions to a qualified employer plan recover their investment (cost) when they begin to take periodic payments. How is the after-tax contribution recovered?

a. All of the after-tax contribution is recovered in the last year distributions are made.

b. All of the after-tax contribution is recovered up front in the first year distributions are made.

c. A portion of the after-tax contribution is recovered each year for the first ten years of distributions.

d. A portion of the after-tax contribution is recovered each year distributions are made until fully recovered.