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Which integration method(s) may be used to integrate a defined contribution plan with Social Security?

A) The excess method
B) The offset method

1 Answer

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Final answer:

The excess method and the offset method are two integration methods that may be used to integrate a defined contribution plan with Social Security.

Step-by-step explanation:

Two integration methods may be used to integrate a defined contribution plan with Social Security: the excess method and the offset method.

The excess method involves calculating the Social Security benefits normally and then reducing them by the amount of the defined contribution plan benefits. This method ensures that the defined contribution plan benefits are not considered in the Social Security calculations. The offset method, on the other hand, allows for the reduction of Social Security benefits based on the amount of benefits received from the defined contribution plan. In this method, the Social Security benefits are reduced by a certain percentage based on the formula provided by the Social Security Administration.

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User Matkv
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