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Can a salary scale be used with Level Dollar Individual Aggregate funding method?


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Guest billkalke
Posted

As I read the regs on automatic approval for a change in funding method, it is OK to use Level Dollar Individual Aggregate method for a plan with a salary related benefit.

Does anyone know of any guidance from the IRS on whether it is OK to use a salary scale when using the Level Dollar Individual Aggregate funding method?

Posted

More important is the question of what funding pattern is developed by this combination of method and assumptions. Read your ASOPs.

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.

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