IRS Issues Tables of Covered Compensation

The IRS has issued tables of covered compensation under Internal Revenue Code Section 401(l)(5)(E) and the Income Tax Regulations thereunder for the 2021 plan year. The tables are contained in Revenue Ruling (Rev. Rul.) 2021-03. 

The covered compensation tables for 2021 provide:

• Data based on calendar years of birth beginning in 1907 and the calendar year at which individuals reach the Social Security retirement age. 
• Rounded covered compensation for 2021 based on calendar year of birth. 

For purposes of determining covered compensation for the 2021 year, the taxable wage base is $142,800.