### Question
Can you define what transition fraction means?


### Answer
**Transition fraction** is defined as the following in *26 U.S.C. § 415*:

> a fraction—


(i) the numerator of which is the lesser of—


(I) $51,875, or


(II) 1.4, multiplied by 25 percent of the compensation of the participant for the year ending in 1981, and


  

(ii) the denominator of which is the lesser of—


(I) $41,500, or


(II) 25 percent of the compensation of the participant for the year ending in 1981

#### Citation:
  - *26 U.S.C. § 415*
  - 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**

