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.  IRC § 401(a)(5)(D).

2.  Treas. Reg. § 1.401(l)-1(a)(1).