IRS Updates Covered Compensation Tables for 2026

The Internal Revenue Service (IRS) has released Revenue Ruling 2026-1 which provides tables of covered compensation under Section 401(I)(5)(E) of the Internal Revenue Code for the 2026 plan year. The tables are used to determine contributions to defined benefit plans and permitted disparity.

For purposes of determining covered compensation for the 2026 year, the taxable wage base was revised to $184,500 (up from $176,100 in 2025).