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Compliance November 20, 2007
IRS Publishes Taxable Wage Base for 2008
November 20, 2007 (PLANSPONSOR.com) - The Internal
Revenue Service has issued Revenue Ruling 2007-71 providing
the table of covered compensation for the 2008 year for use
in determining contributions to defined benefit plans and
permitted disparity.
Reported by Rebecca Moore
For purposes of determining covered compensation for the 2008 plan year, the taxable wage base is $102,000. Permitted disparity allows for larger contributions or benefits with respect to compensation in excess of the Social Security wage base.
In determining an employee’s covered compensation for a plan year, the taxable wage base for the plan year is the taxable wage base in effect as of the beginning of the plan year.
Revenue Ruling 2007-71 is here .
It will be published in Internal Revenue Bulletin 2007-50 dated December 10, 2007.