### Question
How does the law define funded percentage?


### Answer
Under *26 U.S.C. § 433*, **funded percentage** is defined as:

> the ratio (expressed as a percentage) which—



(i) the value of plan assets (as determined under subsection (c)(2)), bears to



(ii) the plan's funding liability

#### Citation:
  - *26 U.S.C. § 433*
  - 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**

