### Question
What does excess assets mean?


### Answer
**Excess assets** has the following meaning in *26 U.S.C. § 414*:

> an amount equal to the excess (if any) of—


(i) the fair market value of the assets of the original plan immediately before the spin-off, over


(ii) the amount of assets required to be allocated after the spin-off to all plans (determined without regard to this paragraph)

#### Citation:
  - *26 U.S.C. § 414*
  - 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**

