The IRS has released the covered compensation tables for the 2021 plan year. For purposes of determining covered compensation for the 2021 year, the taxable wage base is $142,800. As background, the tax code provides that certain employee benefit plans are qualified plans only if the contributions or benefits provided don’t discriminate in favor of highly compensated employees. For purposes of determining an employee’s covered compensation, a defined benefit plan uses the covered compensation tables developed by the IRS. To view the 2021 tables in Revenue Ruling 2021-3: https://bit.ly/3qwr4Yk Call or visit our website for more information! www.mjscpa.com/
