Additional Voluntary Contribution – AVC

Filed Under » , , , ,
Dictionary Says

Definition of 'Additional Voluntary Contribution – AVC'

An extra allocation of funds to a retirement savings account that is above the amount that an employer will provide a matching contribution for. Additional voluntary contributions are made at the discretion of the employee and go to an employer sponsored pension plan. Additional contributions can be made to tax-deferred savings accounts such as the 401(k), 403(b) and individual retirement accounts (IRAs).
Investopedia Says

Investopedia explains 'Additional Voluntary Contribution – AVC'

Additional voluntary contributions allow employees to contribute more money to their tax-deferred savings account. Employer-sponsored retirement plans typically indicate the percentage of the employee's salary that will be matched with contributions by the employer towards the retirement plan. Employees can make additional payments to increase the account's value and thereby increase the amount of money the employee will receive following retirement. Additional voluntary contributions may vary in tax treatment depending on the type of plan, but if they are made into a tax-defered account, any returns accumulate tax-free until retirement.

Articles Of Interest

  1.

    Weave Your Own Retirement Safety Net

    Build savings to support yourself in case pension plans and Social Security fall through.

  2. Lump Sum Versus Regular Pension Payments

    If you're about to retire, you may be facing this dilemma soon. Find out what your options are.

  3. Personal Pensions: Repackaging The Annuity

    Discover an investment that can provide a stable income once you've left the work force.

  4. Pension Protection Act Of 2006 Becomes Law

    Learn how the passed bill can help you save more for retirement.

  5. Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.

  6. The 401(k) and Qualified Plans Tutorial

    Learn about eligibility requirements, contribution to and distribution rules for these retirement plans.

  7. Are You Really Retired Just Because You Stopped Working?

    Retirement doesn't have to mean the end of working, it can be just the end of working to get by every week. Retirement should be about working only if you want to, not because you have to.

  8. Introduction To Coincident And Lagging Economic Indicators

    Investors can learn a lot, or very little, from these indicators once they know how to use them.

  9. How To Cut Your Mutual Fund Fees By Up To 90%

    Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ...

  10. 5 Money Moves To Make In September

    From a financial perspective, September is a great time for a quick reboot of your financial mind-set.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center