Tax Facts

3857 / Will a plan be considered discriminatory if it is integrated with Social Security?

An integrated plan will not be considered discriminatory merely because the plan is integrated with Social Security (i.e., the plan uses the permitted disparity rules).1 As a result, if a plan is integrated in a way that satisfies the permitted disparity rules, the disparity is disregarded in determining whether the plan satisfies the applicable defined contribution or defined benefit safe harbor.2 For details on Social Security integration, see Q 3863.

1. See IRC § 401(a)(5)(D).

2. See Treas. Reg. § 1.401(l)-1(a)(1).

|
Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.