Account balance

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Account balance

Credits minus debits at the end of a reporting period.

Account Balance

The amount available in an account. Simply put, the account balance is the net of all credits less all debits. A positive account balance indicates the account holder has funds available to him/her, while a negative balance indicates the holder owes money. Account balances are important in banking because they determine whether or not an account holder has money for living expenses and in margin accounts because they show whether the holder can conduct more margin transactions.

Account balance.

Your account balance is the amount of money you have in one of your financial accounts. For example, your bank account balance refers to the amount of money in your bank accounts.

Your account balance can also be the amount of money outstanding on one of your financial accounts. Your credit card balance, for example, refers to the amount of money you owe a credit card company.

With your 401(k), your account balance, also called your accrued benefit, is the amount your 401(k) account is worth on a date that it's valued. For example, if the value of your account on December 31 is $250,000, that's your account balance.

You use your 401(k) account balance to figure how much you must withdraw from your plan each year, once you start taking required distributions after you turn 70 1/2. Specifically, you divide the account balance at the end of your plan's fiscal year by a divisor based on your life expectancy to determine the amount you must take during the next fiscal year.

References in periodicals archive ?
The study, in the June 2010 EBRI Issue Brief, examines health savings accounts and health reimbursement arrangements assets, account balances, and rollovers from 2006 to 2009.
The plan allocates its administrative expenses among employees' accounts based on the ratio of each account balance to total account balances.
Allowing unaudited account balances (or ratios) to unduly influence expectations of what current balances should be.
The proposed regulations also require that participants with small account balances be offered "look-through investment vehicles," such as pooled-investment vehicles and Mutual funds, so they can achieve adequate diversification within asset classes.
DALLAS & DUBLIN, Ireland -- Trintech Group Plc (Nasdaq:TTPA), a leading provider of transaction reconciliation and payment infrastructure solutions, today announced that Driehaus Capital Management has selected Trintech's ReconNET to automate the verification and reconciliation of its cash activity, cash account balances, trade activity, position balances, and foreign exchange trade activity.
The EBRI/ICI 401(k) database, the largest of its kind, showed that average account balances rose to $91,042 at year-end 2004 from $67,016 at year-end 1999 for those who maintained accounts for the entire period.
The plan provides that, on a termination or partial termination of the plan, all affected participants will vest 100% in their account balances.
The money is paid first to outside creditors and then to other partners with positive capital account balances.
Payment of all claims from a plan member's FSA, HRA or HSA account is handled automatically, with account balances immediately updated.
The change in a participant's balance is the result of three factors: new contributions by the participant and the employer; total investment return on account balances, which depends on the performance of financial markets and the allocation of assets in the individual's account; and withdrawals, borrowing, and loan repayments.
An annual distribution amount for 2001 is calculated by amortizing the aggregated account balances of IRAs 1, 2 and 3 as of Dec.
Because they receive periodic statements of their account balances, participants more easily see and more readily understand these amounts.