REVENUE RULE 95-30
1995-15 I.R.B. 5
Internal Revenue Service
Revenue Ruling
COVERED COMPENSATION TABLES; 1994; 1995
March 21, 1995
§401.--Qualified Pension, Profit-Sharing And Stock Bonus Plans, 26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or benefits.
Covered compensation tables; 1994; 1995. The covered compensation tables for determing contributions to defined benefit plans and permitted disparity are set forth.
This revenue ruling provides tables of covered compensation under s 401(l)(5)(E) of the Internal Revenue Code and the Income Tax Regulations, thereunder, for the 1994 and 1995 plan years.
Section 401(l)(5)(E)(i) defines covered compensation with respect to an employee, as the average of the contribution and benefit bases in effect under s 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.
Section 401(l)(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.
Section 1.401(l)-1(c)(32) of the Income Tax Regulations defines the taxable wage base as the contribution and benefit base under s 230 of the Social Security Act.
Section 1.401(l)-1(c)(7)(i) 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 s 1.401(l)-1(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 s 1.401(l)-1(c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year.
Section 1.401(l)-1(c)(7)(ii) provides that, for purposes of determining the amount of an employee's covered compensation under s 1.401(l)-1(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 the 1994 year the taxable wage base is $60,600 and for 1995 the taxable wage base is $61,200.
The following tables provide covered compensation for 1994:
1994 COVERED COMPENSATION TABLE
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1994 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1994 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1994 Covered Comp. |
| 1929
1994 24,312 1930 1995 25,908 1931 1996 27,492 1932 1997 29,088 1933 1998 30,684 1934 1999 32,280 1935 2000 33,876 1936 2001 35,412 1937 2002 36,960 1938 2004 39,972 1939 2005 41,484 1940 2006 42,996 |
1941
2007 44,472 1942 2008 45,888 1943 2009 47,244 1944 2010 48,576 1945 2011 49,872 1946 2012 51,132 1947 2013 52,356 1948 2014 53,436 1949 2015 54,420 1950 2016 55,308 1951 2017 56,112 1952 2018 56,820 1953 2019 57,480 |
1954
2020 58,080 1955 2022 59,088 1956 2023 59,532 1957 2024 59,892 1958 2025 60,156 1959 2026 60,360 1960 2027 60,504 1961 2028 60,600 1962 2029 60,600 1963 or later 2030 60,600 |
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1994 Rounded Covered Compensation Table
| Year of Birth/Covered Compensation | Year of Birth/Covered Compensation |
| 1929 $24,000 1930 - 1931 $27,000 1932 - 1933 $30,000 1934 - 1935 $33,000 1936 - 1937 $36,000 1938 $39,000 1939 - 1940 $42,000 1941 - 1942 $45,000 |
1943 - 1944 $48,000 1945 - 1947 $51,000 1948 - 1950 $54,000 1951 - 1954 $57,000 1955 - 1958 $60,000 1959 or Later $60,600 |
The following tables provide covered compensation for 1995:
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1995 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1995 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1995 Covered Comp. |
| 1930 1995 25,920 1931 1996 27,528 1932 1997 29,148 1933 1998 30,756 1934 1999 32,364 1935 2000 33,972 1936 2001 35,532 1937 2002 37,092 1938 2004 40,152 1939 2005 41,676 1940 2006 43,200 1941 2007 44,688 |
1942 2008 46,128 1943 2009 47,508 1944 2010 48,852 1945 2011 50,160 1946 2012 51,432 1947 2013 52,680 1948 2014 53,772 1949 2015 54,780 1950 2016 55,680 1951 2017 56,508 1952 2018 57,240 |
1953 2019 57,900 1954 2020 58,524 1955 2022 59,568 1956 2023 60,024 1957 2024 60,408 1958 2025 60,684 1959 2026 60,912 1960 2027 61,080 1961 2028 61,176 1962 2029 61,200 1963 or later 2030 61,200 |
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1995 Rounded Covered Compensation Table
| Year of Birth/Covered Compensation | Year of Birth/Covered Compensation |
| 1930 - 1931 $27,000 1932 - 1933 $30,000 1934 - 1935 $33,000 1936 - 1937 $36,000 1938 $39,000 1939 - 1940 $42,000 1941 - 1942 $45,000 |
1943 - 1944 $48,000 1945 - 1946 $51,000 1947 - 1949 $54,000 1950 - 1953 $57,000 1954 - 1957 $60,000 1958 or Later $61,200 |
DRAFTING INFORMATION
The principal author of this revenue ruling is Donna Prestia of the Employee Plans Division. For further information regarding this revenue ruling, 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. 95-30, 1995-15 I.R.B. 5