### Question
How does the law define full-funding limitation?


### Answer
Under *26 U.S.C. § 431*, **full-funding limitation** is defined as:

> the excess (if any) of—


(i) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan), over


(ii) the lesser of—


(I) the fair market value of the plan's assets, or


(II) the value of such assets determined under paragraph (2)

#### Citation:
  - *26 U.S.C. § 431*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART III-RULES RELATING TO MINIMUM FUNDING STANDARDS AND BENEFIT LIMITATIONS > Subpart A-Minimum Funding Standards for Pension Plans**

