### Question
How does the law define full-funding limitation?


### Answer
Under *29 U.S.C. § 1082*, **full-funding limitation** is defined as:

> the excess (if any) of—


(i) the lesser of (I) the applicable percentage of current liability (including the expected increase in current liability due to benefits accruing during the plan year), or (II) the accrued liability (including normal cost) under the plan (determined under the entry age normal funding method if such accrued liability cannot be directly calculated under the funding method used for the plan), over


(ii) the lesser of—


(I) the fair market value of the plan's assets, or


(II) the value of such assets determined under paragraph (2)

#### Citation:
  - *29 U.S.C. § 1082*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 3-funding**

