SECTION 4. METHOD

.01 Determination of total contribu- tions . The amount of total contributions to a defined benefit plan for the benefit of a particular individual is deemed to be the product of the following three quantities multiplied by one another, each such quantity determined as of the annuity starting date—

(i) the present value of the individual’s pension payable at the annuity starting date, determined under section 4.02;

(ii) the amount from Table I below based on the number of years from the first date the individual became a participant in the plan to the annuity starting date (representing the amount that, when contributed on an annual level basis, will accumulate to $1.00 at the annuity starting date); and

(iii) the number of years from the first date the individual became a participant in the plan to the annuity starting date.

.02 Present value of pension . (a) If payment is made in the form of a straight life

26 CFR 1.861–4: Compensation for labor or per- sonal services. (Also: Part I, sections 861, 862, 871, 1441.)

Rev. Proc. 2004–37