contribution


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Contribution

Money placed in an individual retirement account (IRA), an employer-sponsored retirement plan, or other retirement plan for a particular tax year. Contributions may be deductible or nondeductible, depending on the type of account.

Contribution

Money placed into an annuity or retirement account. Most of the time, contributions are small and are made on a regular basis, especially monthly. Occasionally, however, one may make a large, one-time contribution to purchase the annuity or retirement account. Contributions are combined and invested and, along with any earnings, are eventually repaid to the annuitant or account holder in monthly installments.
Contributionclick for a larger image
Fig. 26 Contribution. Output and sales of chairs.

contribution

the difference between SALES REVENUE and VARIABLE COSTS. If total contributions are just large enough to cover FIXED COSTS then the producer BREAKS EVEN; if contributions are less than fixed costs the producer makes a LOSS; while if contributions exceed fixed costs then the producer makes a PROFIT. Fig. 26 shows how contributions provide a fund out of which total fixed costs must be paid before any profit is made. See MARGINAL COSTING.

contribution

the difference between a product's SALES REVENUE and its VARIABLE COSTS. If total contributions are just large enough to cover FIXED COSTS then the producer BREAKS EVEN; if contributions are less than fixed costs, the producer makes a LOSS; while if contributions exceed fixed costs then the producer makes a PROFIT. See LOSS MINIMIZATION, MARGINAL COST PRICING.

contribution

(1) An appraisal principle that says the value of an improvement is the amount it adds to the value of the property as a whole,not the value of the improvement standing alone in a void. A backyard workshop in a prestigious neighborhood might not add any value at all and could be considered an eyesore detracting from value, but might be worth $10,000 in a different neighborhood.(2) A legal principle holding that if a judgment is collected against one who was held guilty of negligence,assault,defamation,fraud,or some other tort,then that person may obtain a contribution from others against whom the same judgment was rendered, for their proportionate share of the judgment.Likewise,persons jointly liable for a debt,such as partners or cotenants,are responsible to pay their share to the other if one pays the entire amount.

References in periodicals archive ?
There are six types of National Insurance contributions known as classes.
Automatic-enrollment contribution percentages: To avoid the tests, the PPA '06 requires that the automatic contributions, stated as a percent of an employee's compensation, fall within a specified range.
404(a)(7) deduction limitation--which limited deductions to 25 percent of eligible plan compensation when an employer sponsors both a defined contribution (DC) and defined benefit (DB) plan--will be determined without regard to DB plans that are covered by the Pension Benefit Guaranty Corporation.
He could have taken the stipend and made it appear as though it was a political contribution,'' McClain said.
If services are rendered by a husband and wife, consider balancing their compensation (as long as it is reasonable and customary) to increase their overall retirement contribution.
Ibn Sina's contribution to the creation of this harmonious interplay between dietary and medical usages and regulations is central, and he left that as a legacy for later Islamic medicine and even traditional cuisines of the Islamic world.
The division's contribution margin will be the difference between their revenue and the sum of their variable cost and salaries.
Depending on how the defined-contribution plan is structured, employees could be required to pay taxes on the employer's contribution, said Brian Goebel, vice president, core benefit marketing, Pacific Life & Annuity Co.
By 2000, Hillary Rodham Clinton's Senate campaign was telling people to make a big contribution and let the campaign staff break it down into hard money for the campaign, hard money for her related campaign committee, and soft money to be used by other committees for "party building.
Supreme Court placed on individual contributions in its landmark ruling Buckley v.
Finally, if funds are withdrawn before five years from the date of the first contribution, the earnings on these funds are subject to regular income taxes and will be assessed the 10 percent penalty for early withdrawals.

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