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.
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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.

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Revenue Ruling 2007-71 is here .

It will be published in Internal Revenue Bulletin 2007-50 dated December 10, 2007.

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