### Question
Can you define what modified funded percentage means?


### Answer
**Modified funded percentage** is defined as the following in *26 U.S.C. § 432*:

> the percentage equal to a fraction the numerator of which is current value of plan assets (as defined in section 3(26) of the Employee Retirement Income Security Act of 1974) and the denominator of which is current liabilities (as defined in section 431(c)(6)(D))

#### Citation:
  - *26 U.S.C. § 432*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART III-RULES RELATING TO MINIMUM FUNDING STANDARDS AND BENEFIT LIMITATIONS > Subpart A-Minimum Funding Standards for Pension Plans**

