### Question
How is the term funded percentage defined?


### Answer
The term **funded percentage** is defined in *26 U.S.C. § 432* as the following:

> the percentage equal to a fraction—


(A) the numerator of which is the value of the plan's assets, as determined under section 431(c)(2), and


(B) the denominator of which is the accrued liability of the plan, determined using actuarial assumptions described in section 431(c)(3)

#### Citation:
  - *26 U.S.C. § 432*
  - 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**

