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CHAPTER 10 PERMITTED DISPARITY

Description

This chapter addresses the permitted disparity rules under IRC §401(l) and the concept of "imputing" permitted disparity under certain circumstances. Permitted disparity is the concept of taking into consideration the employer's contributions to Social Security on behalf of the plan participants. IRC §401(l) is a safe harbor option for demonstrating that contributions or benefits under the plan are nondiscriminatory. Section III discusses the safe harbor option for defined contribution plans, and Section VI discusses the safe harbor option for defined benefit plans. Special rules for target benefit plans are disc

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