Save time with our cheat sheets, fact sheets, checklists & books!

March 6, 2009

Social security integration (Permitted disparity)

Your Guide

Print

Definition

Method of computing and allocating nonelective contributions under an employer sponsored plan, where the allocation method results in participants with compensation above the integration level receiving a higher percentage of contribution .

When computing social security integration, the taxable wage base is used to determine the allocation of contributions.

Referring Cite

  • IRC § 401(l)
  • Treas Reg § 1.401(l)-1 Permitted disparity in employer-provided contributions or benefits.
  • Treas Reg § 1.401(l)-2 Permitted disparity for defined contribution plans.
  • Treas Reg § 1.401(l)-3 Permitted disparity for defined benefit plans.
  • Treas Reg § 1.401(l)-5 Overall permitted disparity limits
  • Notice 89-70

Additional Helpful Information

  • Permitted disparity cannot be used for SIMPLE IRAs
More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change