On November 27, 2017, the Social Security Administration announced a correction to the previously published maximum taxable wage base in 2018. The corrected amount is $128,400. (The previously announced maximum was $128,700.) The change was made due to approximately 500,000 corrected W-2s provided to the Social Security Administration in late October 2017.
Though not yet announced, plan sponsors that use a permitted disparity formula (also known as an “integration formula”) in a retirement plan should expect the IRS to revise the covered compensation tables previously published in Revenue Ruling 2017-22 for use in 2018.
By: Suzanne M. Spicer, Senior Employee Benefits Advisor at Morgan Lewis