### Question
How is the term required annual payment defined?


### Answer
The term **required annual payment** is defined in *29 U.S.C. § 1083* as the following:

> the lesser of—


(I) 90 percent of the minimum required contribution (determined without regard to this subsection) to the plan for the plan year under this section, or


(II) 100 percent of the minimum required contribution (determined without regard to this subsection or to any waiver under section 1082(c) of this title) to the plan for the preceding plan year

#### Citation:
  - *29 U.S.C. § 1083*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 3-funding**

