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Compliance December 18, 2008
IRS Releases 2009 Covered Comp Figure
December 18, 2008 (PLANSPONSOR.com) - For purposes
of determining contributions to defined benefit plans and
permitted disparity in defined contribution plans for the
2009 plan year, the taxable wage base is $106,800, up from
$102,000 last year, according to the Internal Revenue Service
(IRS).
Reported by
PS
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 Rev. Rul. 2009-2is available here .
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