Social Security Administration Releases 2007 Taxable Wage Base

The Social Security Administration has announced a taxable wage base (TWB) of $97,500 for 2007, up from $94,200 in 2006.  This amount is used in certain retirement savings contribution allocation formulas that use a principle known as “permitted disparity,” or “integration.”   For example, one permitted disparity formula allows employees who earn more than the TWB to receive an additional allocation because such individuals do not receive a Social Security benefit on their income above the TWB. 

The announcement may be accessed at