Monday, January 20, 2014

IRS Releases 2014 Covered Compensation Tables for Calculating Certain Benefits

The Internal Revenue Service recently released Revenue Ruling 2014-3, providing the covered compensation tables for use in calculating certain benefits under qualified pension, profit-sharing, and stock bonus plans for the 2014 plan year.

In general, covered compensation is used to determine "permitted disparity" for safe harbor defined benefit plans under section 401(l) and "imputed disparity" for DB plans subject to the general test under Section 401(a)(4). For purposes of determining covered compensation for the 2014 year, the taxable wage base is $117,000.

The revenue ruling is available here.

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