### Question
Can you define what existing excess reserve means?


### Answer
**Existing excess reserve** is defined as the following in *26 U.S.C. § 419A*:

> the excess (if any) of—


(i) the amount of assets set aside at the close of the first taxable year ending after July 18, 1984, for purposes described in subsection (a), over


(ii) the account limit determined under this section (without regard to this paragraph) for the taxable year for which such increase is being computed

#### Citation:
  - *26 U.S.C. § 419A*
  - 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 D-Treatment of Welfare Benefit Funds**

