Jump to content

Imputed disparity


Richard Anderson

Recommended Posts

An employer has a DB plan and a New Comparability profit sharing plan. The DB plan is integrated with Social Security. The plans are not aggregated for 410(B) or 401(a)(4).

1.401(l) of the regs says that only one plan maintained by an employer may be integrated with Social Security.

I take this to mean that the New Comp plan may not imput permitted disparity in the cross testing to satisfy 401(a)(4) if the DB plan is integrated.

Am I correct?

[This message has been edited by Richard Anderson (edited 09-03-1999).]

Link to comment
Share on other sites

You are correct (assuming the DB plan is integrated to the maximum).

401(l) limits the maximum permitted disparity in any one year to 1 times the maximum disparity. Theoretically, if the DB is not integrated to the maximum, the unused portion of the maximum disparity could be used in the crosstested plan.

------------------

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...