### Question
How does the law define applicable defined benefit plan?


### Answer
Under *26 U.S.C. § 411*, **applicable defined benefit plan** is defined as:

> a defined benefit plan under which the accrued benefit (or any portion thereof) is calculated as the balance of a hypothetical account maintained for the participant or as an accumulated percentage of the participant's final average compensation

#### Citation:
  - *26 U.S.C. § 411*
  - 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 B-Special Rules**

