The IRS has issued revised covered compensation tables for the 2018 plan year to reflect a change to the taxable wage base for 2018 that was announced by the Social Security Administration on November 27, 2017. These revised tables apply in lieu of those that were provided in Rev. Rul. 2017-22, I.R.B. 2017-48, 536. For purposes of determining covered compensation for the 2018 plan year, the taxable wage base is $128,400.
Covered compensation with respect to an employee is defined as the average of the contribution and benefit bases in effect under section 230 of the Social Security Act for each year in the 35-year period ending with the year in which the employee attains Social Security retirement age. The tables are developed by rounding the actual amounts of covered compensation for different years of birth.
Rev. Rul. 2017-22, I.R.B. 2017-48, 536, is modified and superseded.
Rev. Rul. 2018-4
Code Sec. 401
CCH Reference – 2018FED ¶18,119.10
Tax Research Consultant
CCH Reference – TRC RETIRE: 24,208
Go to Source
Powered by WPeMatico