### Question
How does SHARING, STOCK BONUS PLANS, ETC. define applicable percentage?


### Answer
Under *26 U.S.C. § 408*, **applicable percentage** is defined as:

> 3 percent

#### Citation:
  - *26 U.S.C. § 408*
  - 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 A-General Rule**

