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).
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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   Rev. Rul. 2009-2is available here .   

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