Compensation & Benefits Library™ gives you accurate answers and practical guidance to help you design, analyze, compare, administer, and communicate compensation and benefits...
Feb. 22 — The Internal Revenue Service Feb. 22 issued compensation tables for calculating certain benefits under qualified pension, profit-sharing and stock bonus plans for plan year 2016.
The tables in Revenue Ruling 2016-5 list rounded amounts of covered compensation for birth years and Social Security retirement years. Plan administrators may use the covered compensation tables to determine permitted disparity when integrating retirement plan benefits with Social Security benefits, the IRS said.
An employee's covered compensation, as defined by tax code Section 401(l)(5)(E)(i), is the average of the contribution and benefit bases under Section 230 of the Social Security Act—also known as the taxable wage base—for each year in a 35-year period that ends with the year in which the employee reaches Social Security retirement age, the IRS said.
The taxable wage base is $118,500 for purposes of determining covered compensation in 2016, the IRS said. The taxable wage base was the same in plan year 2015.
Rev. Rul. 2016-5 was published in Internal Revenue Bulletin 2016-8.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)