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Compliance December 29, 2010
IRS Releases 2011 Covered Comp Tables
The Internal Revenue Service has issued Revenue Ruling 2011-3 with the table of covered compensation for the 2011 plan year.
Reported by PLANADVISER staff
The revenue ruling provides tables of covered compensation under § 401(l)(5)(E) to be used for determining contributions to defined benefit plans and permitted disparity in defined contribution plan contributions.
To determine 2011 plan year covered compensation, the taxable wage base is $106,800, unchanged from 2010. 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 period. The IRS document is here.You Might Also Like:
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