### Question
Can you define what funded percentage means?


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

> 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**

