REVENUE RULE 93-20
1993-1 C.B. 62, 1993-12 I.R.B. 14.
Internal Revenue Service
Revenue Ruling
PERMITTED DISPARITY; COVERED COMPENSATION TABLES
Published: March 5, 1993
§ 401.--Qualified Pension, Profit-Sharing and Stock Bonus Plans, 26 CFR 1.401(1)-1: Permitted disparity with respect to employer-provided contributions or benefits.
Permitted disparity; covered compensation tables. Updated covered compensation tables are provided in order that qualified plans that utilize the permitted disparity provisions of § 401(l) of the Code may calculate benefits for participants.
This revenue ruling provides tables of covered compensation under § 401(1)(5)(E) of the Internal Revenue Code and Income Tax Regulations, thereunder, for 1990, 1991, 1992 and 1993.
§ 401(1)(5)(E)(i) of the Code defines covered compensation with respect to an employee, as the average of the contribution and benefit bases in effect under § 230 of the Social Security Act for each year in the 35-year period ending with the year in which the employee attains social security retirement age.
§ 401(1)(5)(E)(ii) of the Code states that the determination for any year preceding the year in which the employee attains social security retirement age shall be made by assuming that there is no increase in covered compensation after the determination year and before the employee attains social security retirement age.
§ 1.401(1)-1(c)(32) of the regulations defines the taxable wage base as the contribution and benefit base under § 230 of the Social Security Act.
§ 1.401(1)-1(c)(7)(i) of the regulations defines covered compensation for an employee as the average (without indexing) of the taxable wage bases in effect for each calendar year during the 35-year period ending with the last day of the calendar year in which the employee attains (or will attain) social security retirement age. A 35-year period is used for all individuals regardless of the year of birth of the individual. In determining an employee's covered compensation for a plan year, the taxable wage base for all calendar years beginning after the first day of the plan year is assumed to be the same as the taxable wage base in effect as of the beginning of the plan year. An employee's covered compensation for a plan year beginning after the 35-year period applicable under (c)(7)(i) is the employee's covered compensation for a plan year during which the 35-year period ends. An employee's covered compensation for a plan year beginning before the 35-year period applicable under this paragraph (c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year. § 1.401(1)-1(c)(7)(ii) of the regulations provides that, for purposes of determining the amount of an employee's covered compensation under paragraph (c)(7)(i), a plan may use tables, provided by the Commissioner, that are developed by rounding the actual amounts of covered compensation for different years of birth. For purposes of determining covered compensation for each year the taxable wage base is shown below:
Calendar Taxable Wage
| Year/Base |
| 1990 $51,300 1991 $53,400 1992 $55,500 1993 $57,600 |
The following tables provide covered compensation for 1990, 1991, 1992 and 1993, respectively.
1990 Covered Compensation Table
Calendar Calendar Year of 1990 Covered
Year of Social Security Compensation
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1990 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1990 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1990 Covered Comp. |
| 1907 1972 $4,488 1908 1973 4,704 1909 1974 5,004 1910 1975 5,816 1911 1976 5,664 1912 1977 6,060 1913 1978 6,480 1914 1979 7,044 1915 1980 7,692 1916 1981 3,460 1917 1982 9,800 1918 1983 10,236 1919 1984 11,232 1920 1985 12,276 1921 1986 13,368 1922 1987 14,520 1923 1988 15,708 1924 1989 16,968 1925 1990 18,312 1926 1991 19,668 1927 1992 21,012 |
1928 1993 22,356 1929 1994 23,688 1930 1995 25,008 1931 1996 26,340 1932 1997 27,672 1933 1998 28,992 1934 1999 30,324 1935 2000 31,656 1936 2001 32,928 1937 2002 34,212 1938 2004 36,696 1939 2005 37,932 1940 2006 39,180 1941 2007 40,392 1942 2008 41,544 1943 2009 42,636 1944 2010 43,692 1945 2011 44,724 1946 2012 45,720 1947 2013 46,680 |
1948 2014 47,496 1949 2015 48,216 1950 2016 48,840 1951 2017 49,380 1952 2018 49,824 1953 2019 50,208 1954 2020 50,544 1955 2022 51,024 1956 2023 51,204 1957 2024 51,300 1958 2025 51,300 1959 2026 51,300 1960 2027 51,300 1961 2028 51,300 1962 2029 51,300 1963 or later 2030 51,300 |
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1990 Rounded Table
| Year of Birth/Covered Compensation | Year of Birth/Covered Compensation |
| 1924 - 1925 $18,000 1926 - 1928 $21,000 1929 - 1930 $24,000 1931 - 1932 $27,000 1933 - 1934 $30,000 1935 - 1937 $33,000 |
1938 $36,000 1939 - 1941 $39,000 1942 - 1943 $42,000 1944 - 1946 $45,000 1947 - 1951 $48,000 1952 - 1956 $51,000 1957 or later $51,300 |
1991 Covered Compensation Table
Calendar Calendar Year of 1991 Covered
Year of Social Security Compensation
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1991 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1991 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1991 Covered Comp. |
| 1907 1972 $4,488 1908 1973 4,704 1909 1974 5,004 1910 1975 5,116 1911 1976 5,664 1912 1977 6,060 1913 1978 6,480 1914 1979 7,044 1915 1980 7,692 1916 1981 3,460 1917 1982 9,300 1918 1983 10,236 1919 1984 11,232 1920 1985 12,276 1921 1986 13,368 1922 1987 14,520 1923 1988 15,108 1924 1989 16,968 1925 1990 18,812 1926 1991 19,728 |
1927 1992 21,132 1928 1993 23,928 1929 1994 23,928 1930 1995 25,308 1931 1996 26,700 1932 1997 28,092 1933 1998 29,472 1934 1999 30,864 1935 2000 32,256 1936 2001 31,588 1937 2002 34,932 1938 2004 37,536 1939 2005 38,832 1940 2006 40,140 1941 2007 41,412 1942 2008 42,624 1943 2009 43,776 1944 2010 44,892 1945 2011 45,984 |
1946 2012 47,040 1947 2013 48,060 1948 2014 48,936 1949 2015 49,716 1950 2016 50,400 1951 2017 51,000 1952 2018 51,504 1953 2019 51,948 1954 2020 52,344 1955 2022 52,944 1956 2023 53,184 1957 2024 53,340 1958 2025 53,400 1959 2026 53,400 1960 2027 53,400 1961 2028 53,400 1962 2029 53,400 1963 or later 2030 53,400 |
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1991 Rounded Table
| Year of Birth/Covered Compensation | Year of Birth/Covered Compensation |
| 1924 - 1925 $18,000 1926 - 1927 $21,000 1928 - 1930 $24,000 1931 - 1932 $27,000 1933 - 1934 $30,000 1935 - 1936 $13,000 |
1937 $36,000 1938 - 1940 $39,000 1941 - 1942 $42,000 1943 - 1945 $45,000 1946 - 1948 $48,000 1949 - 1954 $51,000 1955 or later $53,400 |
1992 Covered Compensation Table
Calendar Calendar Year of 1992 Covered
Year of Social Security Compensation
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1992 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1992 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1992 Covered Comp. |
| 1907 1972 $4,488 1908 1973 4,704 1909 1974 5,004 1910 1975 5,316 1911 1976 5,664 1912 1977 6,060 1913 1978 6,480 1914 1979 7,044 1915 1980 7,692 1916 1981 8,460 1917 1982 9,300 1918 1983 10,236 1919 1984 11,232 1920 1985 12,276 1921 1986 13,368 1922 1987 14,520 1923 1988 15,708 1924 1989 16,968 1925 1990 18,312 1926 1991 19,728 |
1927 1992 21,192 1928 1993 22,656 1929 1994 24,108 1930 1995 25,548 1931 1996 27,000 1932 1997 28,452 1933 1998 29,892 1934 1999 31,344 1935 2000 32,796 1936 2001 34,188 1937 2002 35,592 1938 2004 38,316 1939 2005 39,672 1940 2006 41,040 1941 2007 42,372 1942 2008 43,644 1943 2009 44,856 1944 2010 46,032 1945 2011 47,184 |
1946 2012 48,300 1947 2013 49,380 1948 2014 50,016 1949 2015 51,156 1950 2016 51,900 1951 2017 52,560 1952 2018 53,124 1953 2019 53,628 1954 2020 54,084 1955 2022 54,804 1956 2023 55,104 1957 2024 55,320 1958 2025 55,440 1959 2026 55,500 1960 2027 55,500 1961 2028 55,000 1962 2029 55,000 1963 or later 2030 55,500 |
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1992 Rounded Table
| Year of Birth/Covered Compensation | Year of Birth/Covered Compensation |
| 1924 - 1925 $18,000 1926 - 1927 $21,000 1928 - 1929 $24,000 1930 - 1932 $27,000 1933 - 1934 $30,000 1935 - 1936 $33,000 |
1937 $36,000 1938 - 1939 $39,000 1940 - 1941 $42,000 1942 - 1944 $45,000 1945 - 1947 $48,000 1948 - 1950 $51,000 1951 - 1958 $54,000 1959 or later $55,500 |
1993 Covered Compensation Table
Calendar Calendar Year of 1993 Covered
Year of Social Security Compensation
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1993 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1993 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1993 Covered Comp. |
| 1907 1972 $4,488 1908 1973 4,704 1909 1974 5,004 1910 1975 5,316 1911 1976 5,664 1912 1977 6,060 1913 1978 6,480 1914 1979 7,044 1915 1980 7,692 1916 1981 8,100 1917 1982 9,300 1918 1983 10,236 1919 1984 11,232 1920 1985 12,276 1921 1986 13,368 1922 1987 14,520 1923 1988 15,708 1924 1989 16,968 1925 1990 18,312 1926 1991 19,728 |
1927 1992 21,192 1928 1993 22,716 1929 1994 24,228 1930 1995 25,728 1931 1996 27,240 1932 1997 28,752 1933 1998 30,252 1934 1999 31,764 1935 2000 33,276 1936 2001 34,728 1937 2002 36,192 1938 2004 39,036 1939 2005 40,452 1940 2006 41,880 1941 2007 43,272 1942 2008 44,604 1943 2009 45,876 1944 2010 47,112 1945 2011 48,324 1946 2012 49,500 |
1947 2013 50,640 1948 2014 51,636 1949 2015 52,536 1950 2016 53,340 1951 2017 54,060 1952 2018 54,684 1953 2019 55,248 1954 2020 55,764 1955 2022 56,604 1956 2023 56,964 1957 2024 57,240 1958 2025 57,420 1959 2026 57,540 1960 2027 57,600 1961 2028 57,600 1962 2029 57,600 1963 or later 2030 57,600 |
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1993 Rounded Table
| Year of Birth/Covered Compensation | Year of Birth/Covered Compensation |
| 1924 - 1925 $18,000 1926 - 1927 $21,000 1928 - 1929 $24,000 1930 - 1931 $27,000 1932 - 1933 $30,000 1934 - 1935 $33,000 1936 - 1937 $36,000 1938 - 1939 $39,000 |
1940 - 1941 $42,000 1942 - 1943 $45,000 1944 - 1945 $48,000 1946 - 1948 $51,000 1949 - 1953 $54,000 1954 - 1959 $57,000 1960 or later $57,600 |
For Further Information
The principal author of this notice is Donna Prestia of the Employee Plans Technical and Actuarial Division. For further information regarding this notice, call (202) 622-6076 between 2:30 and 4:00 Eastern time (not a toll free number) Monday thru Thursday. Ms. Prestia's number is (202) 622-7377 (also not a toll free number).
Rev. Rul. 93-20, 1993-1 C.B. 62, 1993-12 I.R.B. 14.