### Question
How does the law define cumulative foreign amount?


### Answer
Under *26 U.S.C. § 404A*, **cumulative foreign amount** is defined as:

> the aggregate amount allowed as a deduction under the appropriate foreign tax laws for the taxable year and all prior taxable years to which this section applies

#### Citation:
  - *26 U.S.C. § 404A*
  - 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**

