A Plan Provides a Preretirement Death Benefit Equal to the Present

A plan provides a preretirement death benefit equal to the present value of the accrued benefit. Plan's actuarial equivalence assumptions: Interest rate 7.5% Pre-commencement mortality table None Post-commencement mortality table Applicable mortality under IRC section 417(e) Early retirement benefit is based on plan actuarial equivalence. Selected data for participant Smith: Date of birth 12/31/1952 Date of hire 1/1/2005 Date of participation 1/1/2006 Date of retirement 12/31/2012 Compensation for each year $150,000 Form of benefit elected Life annuitySingle life annuity factors based on the applicable mortality table at selected retirement ages and interest rates: Age 5.0% 7.5%60 13.56 10.84 62 12.98 10.50In what range is Smith's IRC section 415 limit as of 12/31/2012?

A) Less than $118,000
B) $118,000 but less than $121,000
C) $121,000 but less than $124,000
D) $124,000 but less than $127,000
E) $127,000 or more