Usually, if it were a DC plan, it would refer to Social Security Taxable Wage Base, because it’s an annual contribution number. Social Security Covered Compensation is the 35 year average and is generally a DB term.
https://www.irs.gov/pub/irs-drop/rr-24-01.pdf
Here is the table. I grabbed 1959 and rounded.
It also says the ‘benefit’ is defined as 1.0 percent/1.6 percent plan. I’d be hard pressed to hear a DC plan described that way.
The 1.0 percent 1.6 percent formulas is actually a pretty common formula in traditional DB plans for a bunch of boring technical reasons.
https://www.irs.gov/pub/irs-drop/rr-24-01.pdf
Here is the table. I grabbed 1959 and rounded.
It also says the ‘benefit’ is defined as 1.0 percent/1.6 percent plan. I’d be hard pressed to hear a DC plan described that way.
The 1.0 percent 1.6 percent formulas is actually a pretty common formula in traditional DB plans for a bunch of boring technical reasons.
Statistics: Posted by queenofthemadhouse — Wed Apr 10, 2024 2:55 pm — Replies 8 — Views 498