excess described in paragraph (2)(A) for each such taxable year, be equal to— (i) in the case of such first taxable year, 10 percent of the historic excess, and (ii) in the case of each subsequent taxable year to which this paragraph applies, the sum of— (I) 100 percent of amount (if any) by which the excess described in paragraph (2)(A) for such taxable year exceeds the adjusted historic excess for such taxable year, plus (II) 10 percent of the adjusted historic excess for such taxable year (100 percent of such adjusted historic excess for any taxable year if it is less than $1,000). (B) Adjusted historic excess For purposes of this paragraph, the term adjusted historic excess means, with respect to any taxable year, the lesser of— (i) the excess (if any) of the— (I) the historic excess, over (II) the aggregate amount of the historic excess taken into account under clauses (i) and (ii)(II) of subparagraph (A) for all preceding taxable years, or (ii) the aggregate balances to the credit of the payee (whether as a participant, owner, or beneficiary) in all applicable retirement plans (determined as of the close of the calendar year preceding the calendar year in which such taxable year begins) in excess of $4,000,000. (C) Taxable years to which paragraph applies This paragraph shall not apply to— (i) any taxable year if the aggregate amount of the historic excess taken into account under clauses (i) and (ii)(II) of subparagraph (A) for all preceding taxable years equals such historic excess, or (ii) the first taxable year in which the aggregate balances to the credit of the payee (whether as a participant, owner, or beneficiary) in all applicable retirement plans (determined as of the close of the calendar year preceding the calendar year in which such taxable year begins) are $4,000,000 or less and any subsequent taxable year. (6) Definitions For purposes of this subsection, any term used in this subsection which is also used in section 409B shall have the same meaning as when such term is used in such section.