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Taxable Wage Base

Last Updated May 8, 2009

Definition

The maximum amount of wages that can be used to compute social security contributions
 
Referring Cite
Treas. Reg. § 1.401(l)-2(d)
 
Additional Helpful Information
Contributions to qualified plans and SEP IRAs can be integrated with social security ( social security integration). The primary objective of this integration is to permit individuals, whose social security contributions are capped at the taxable wage base, to receive a larger contribution amount under the qualified plan or SEP IRA.