What is the participants “account balance” under a defined contribution plan?
A-11: A participant’s benefits under a defined contribution plan are referred to as the account balance. A participant’s total account balance under a plan may consist of amounts established and maintained under various subaccounts. For example, a plan may contain pretax and after-tax employee contribution accounts and employer-match accounts. Further, each subaccount may contain various investment fund alternatives in which a participant may choose to invest contributions.
