Table of Factors
Average entry age | Factors | |
Average compensation benefit formula | Other formulas | |
Less than 30 | 0.5 | 0.75 |
30 to 40 | 0.4 | 0.6 |
Over 40 | 0.2 | 0.3 |
Example. Plan A is contributory DB plan. For the plan year beginning in 1994, Employee M participates in Plan A and accrues a benefit under the terms of the plan (without regard to the minimum benefit requirement of paragraph (b)(3)(ii) of this section) of $3,000. The portion of Employee M's benefit accrual for the plan year beginning in 1994 derived from employee contributions is $2,000, determined by applying the rules of section 411(c) to such contributions. The requirement of paragraph (b)(3)(ii) of this section is not satisfied for the plan year beginning in 1994 unless the plan provides that Employee M's benefit accrual for the plan year beginning in 1994 is equal to $3,500 ($2,000 + (50 percent * $3,000)).
26 C.F.R. §1.401(a)(4)-6