A defined benefit plan must reduce the $215,000 (in 2017) maximum benefits payable by one-tenth for each year of participation under 10 years that an employee has performed.

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This is true according to the IRS rules for defined benefit plans. The maximum annual benefit of $215,000 (in 2017) must be reduced by one-tenth for each year an employee has participated in the plan for less than 10 years. This is known as the "10-year rule." For example, if an employee has only participated in the plan for 5 years, the maximum benefit payable would be reduced to $107,500 ($215,000 - 5 x $21,500).

A Defined Benefit Plan Must Reduce the $215,000 (In 2017)