DB415Limit
returns
the 415(b)(1)(A) DB Maximum Annuity dollar amount for a
given year. The annual benefit accrued by a participant in a defined benefit
plan for the limitation year cannot exceed this amount.
DB415Limit for year 𝑥 is based on the
following formula:
|
Where 𝐶𝑃𝐼𝑦𝑒𝑎𝑟
is the “3rd quarter CPI” (sum of
the CPI-U for the months of July, August, and September) in the given year.
(September CPI is usual published around October 13.) If the amount so determined is not a multiple of $5,000,
it is rounded to the nearest multiple of $5,000. Not less than the amount for
the prior year. Note: ·
Prior to 1987
there was no limit. ·
From 1987 through 2001, the limit was $90,000,
indexed for the increase
in 4th quarter CPI (no rounding through 1994;
$5,000 rounding beginning in 1995). |
Syntax
DB415Limit (DeterminationYear, [LawYear],
[Inflation], [Age])
|
Parameter Name |
Description |
|
DeterminationYear |
A
4 digit number, or an optional text value as shown in the table below. If the
DeterminationYear is after the LawYear, this is a projected
calculation based on the Inflation assumption. Click to view various options for the DeterminationYear parameter. |
|
LawYear |
A
4 digit number. |
|
Inflation |
The
assumed rate of inflation: the IRS
Cost-of-Living Adjustment for future years, as measured by the
year-over-year increase in CPI-U. This
is used only for a projected calculation. Optional:
default = 0% |
|
Age |
The
age to determine the age-adjusted section 415(b)(1)(A) dollar limit under
1.415(b)-1(d)(1)(i) and 1.415(b)-1(e)(1)(i). if age < 62 or >65, then
the dollar limit is adjusted for actuarial equivalence based on 5% interest
and lump sum mortality table in effect for the DeterminationYear. Optional,
default = 65. |