### Question
Can you define what excess pension assets means?


### Answer
**Excess pension assets** is defined as the following in *26 U.S.C. § 420*:

> the excess (if any) of—


(A) the lesser of—


(i) the fair market value of the plan's assets (reduced by the prefunding balance and funding standard carryover balance determined under section 430(f)), or


(ii) the value of plan assets as determined under section 430(g)(3) after reduction under section 430(f), over


  

(B) 125 percent of the sum of the funding target and the target normal cost determined under section 430 for such plan year

#### Citation:
  - *26 U.S.C. § 420*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart E-Treatment of Transfers to Retiree Health Accounts**

