Additional Voluntary Contribution - AVC

Paying Peter now so that Paul pays you more later. Additional voluntary contributions are additions you can make to your employer retirement fund. The wise owl will make, at minimum, contributions equal to the amount that will be matched by the employer, if a lucky wise owl has that option. Additional voluntary contributions can be made to the fund above and beyond the employer matching allowance. Doing so would make you a super wise owl, but only if the contributions are tax deferred and you are in a higher tax bracket than you will be during retirement. Otherwise, Paul wins.