Deduction limit for single-employer plans

the sum of the amounts determined under paragraph (2) with respect to each plan year ending with or within the taxable year, or

the sum of the minimum required contributions under section 430 for such plan years.

The amount determined under this paragraph for any plan year shall be equal to the excess (if any) of—

(i) the sum of— (I) the funding target for the plan year, (II) the target normal cost for the plan year, and (III) the cushion amount for the plan year, over

(ii) the value (determined under section 430(g)(3)) of the assets of the plan which are held by the plan as of the valuation date for the plan year.

the sum of—

(I) the funding target for the plan year,

(II) the target normal cost for the plan year, and

(III) the cushion amount for the plan year, over

the funding target for the plan year,

the target normal cost for the plan year, and

the cushion amount for the plan year, over

the value (determined under section 430(g)(3)) of the assets of the plan which are held by the plan as of the valuation date for the plan year.

If section 430(i) does not apply to a plan for a plan year, the amount determined under subparagraph (A)(i) for the plan year shall in no event be less than the sum of—

(i) the funding target for the plan year (determined as if section 430(i) applied to the plan), plus

(ii) the target normal cost for the plan year (as so determined).

the funding target for the plan year (determined as if section 430(i) applied to the plan), plus

the target normal cost for the plan year (as so determined).

The cushion amount for any plan year is the sum of—

(i) 50 percent of the funding target for the plan year, and

(ii) the amount by which the funding target for the plan year would increase if the plan were to take into account— (I) increases in compensation which are expected to occur in succeeding plan years, or (II) if the plan does not base benefits for service to date on compensation, increases in benefits which are expected to occur in succeeding plan years (determined on the basis of the average annual increase in benefits over the 6 immediately preceding plan years).

50 percent of the funding target for the plan year, and

the amount by which the funding target for the plan year would increase if the plan were to take into account—

(I) increases in compensation which are expected to occur in succeeding plan years, or

(II) if the plan does not base benefits for service to date on compensation, increases in benefits which are expected to occur in succeeding plan years (determined on the basis of the average annual increase in benefits over the 6 immediately preceding plan years).

increases in compensation which are expected to occur in succeeding plan years, or

if the plan does not base benefits for service to date on compensation, increases in benefits which are expected to occur in succeeding plan years (determined on the basis of the average annual increase in benefits over the 6 immediately preceding plan years).

(i) In general In making the computation under subparagraph (A)(ii), the plan’s actuary shall assume that the limitations under subsection ( l ) and section 415(b) shall apply.

(ii) Expected increases In the case of a plan year during which a plan is covered under section 4021 of the Employee Retirement Income Security Act of 1974, the plan’s actuary may, notwithstanding subsection ( l ), take into account increases in the limitations which are expected to occur in succeeding plan years.

In making the computation under subparagraph (A)(ii), the plan’s actuary shall assume that the limitations under subsection ( l ) and section 415(b) shall apply.

In the case of a plan year during which a plan is covered under section 4021 of the Employee Retirement Income Security Act of 1974, the plan’s actuary may, notwithstanding subsection ( l ), take into account increases in the limitations which are expected to occur in succeeding plan years.

For purposes of determining the amount under paragraph (3) for any plan year, in the case of a plan which has 100 or fewer participants for the plan year, the liability of the plan attributable to benefit increases for highly compensated employees (as defined in section 414(q)) resulting from a plan amendment which is made or becomes effective, whichever is later, within the last 2 years shall not be taken into account in determining the target liability.

For purposes of determining the number of plan participants, all defined benefit plans maintained by the same employer (or any member of such employer’s controlled group (within the meaning of section 412(d)(3)) shall be treated as one plan, but only participants of such member or employer shall be taken into account.