IRS Updates Covered Compensation Tables for 2025

The Internal Revenue Service (IRS) has released Revenue Ruling 2025-02 which provides tables of covered compensation under Section 401(I)(5)(E) of the Internal Revenue Code for the 2025 plan year. The tables are used to determine contributions to defined benefit plans and permitted disparity.

For purposes of determining covered compensation for the 2025 year, the taxable wage base was revised to $176,100 (up from $168,600 in 2024).