### Question
What does existing excess reserve mean?


### Answer
**Existing excess reserve** has the following meaning in *26 U.S.C. § 419A*:

> the excess (if any) of—



(i) the amount of assets set aside at the close of the first taxable year ending after July 18, 1984, for purposes described in subsection (a), over



(ii) the account limit determined under this section (without regard to this paragraph) for the taxable year for which such increase is being computed

#### Citation:
  - *26 U.S.C. § 419A*
  - 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 D-Treatment of Welfare Benefit Funds**

