A defined benefit plan must reduce the $225,000 (in 2019) maximum benefits payable by one-tenth for each year of participation under 10 years that an employee has performed.

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This statement is true. A defined benefit plan may reduce the maximum benefits payable by one-tenth for each year of participation under 10 years that an employee has performed. For example, an employee who participates in a defined benefit plan for 7 years would have their maximum benefits payable reduced by 30% (3 years x 10% per year).

A Defined Benefit Plan Must Reduce the $225,000 (In 2019)