Account balance

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Account balance

Credits minus debits at the end of a reporting period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Under that scenario, it would cost $600 a year to manage a $200,000 account balance for someone who's paying 30 basis points versus just $60 on a $20,000 account.
The third method allows payments to be treated as substantially equal periodic payments, if the amount to be distributed annually is determined by dividing the taxpayer's account balance by an annuity factor (the present value of an annuity of $1 per year beginning at the taxpayer's age attained in the first distribution year and continuing for the life of the taxpayer).
These account balances grow through dollar "deposits" (usually represented as a percentage of pay) that are credited to participants' accounts, and interest that is credited at a rate guaranteed by the plan.
An up-to-date, periodic summary of a taxpayer's tax account activity and account balances will permit taxpayers to identify and verify the propriety of transactions flowing through its accounts in a more timely fashion.
Last year's balance plus the average percentage change in the account balance over the past several years.
The median 401(k) plan account balance for consistent participants increased at a compound annual average growth rate of 19.7% between 2010 and year-end 2014, to $56,653-more than three times the median balance of all participant accounts in the database.
Again, all it shows is the account balance as of that one second.
Now Ron Surz, target-date fund expert and alert ThinkAdvisor reader (and contributor), warns of another obvious but overlooked risk related to sequence of returns -- in fact, the very thing he says that gives the risk its potency: namely, high account balances.
The average account balance sat at $1,470 last year, a slight dip but more than double the 2006 average of $696.
ANKARA, September 12, 2011(TUR) - The current account balance posted a net deficit of 50.6 billion USD in the first seven months of 2011, indicating an increase of 26.8 billion USD over the same period of 2010.
The study found that the median participant account balance grew by 33% in 2009, after a decline of 31% in 2008, reflecting the effects of both market improvements and ongoing contributions.