LIBOR Posted December 17, 2002 Posted December 17, 2002 I'm doing a DB val w/ assumed retirement age of 62 & an integrated formula w/ integration level at CC; I'm projecting the wage base ; in calculating CC at SSRA, would I average the 35 previously determined wage bases before SSRA or would I assume the projected wage base at 62 would continue to SSRA and then average this new array of 35 wage bases ?
david rigby Posted December 17, 2002 Posted December 17, 2002 Check the plan document for exact definition of the integration level. If it is like most, it will refer to (or restate) the definition in IRC 401(l)(5)(E). However, variation possible under the regs. The usual definition of Covered Compensation refers to a 35-year average calculated at a particular point in time (that is, look backwards 35 years). A determination date prior to that point will assume the SS wage base remains level until that point. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
LIBOR Posted December 17, 2002 Author Posted December 17, 2002 thanks pax ; that Code section was perfect ; I've been immersed so much in the 401(l) reg. that I didn't think to go to the Code for the guidance.
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