REVENUE RULE 95-75
1995-2 C.B. 39, 1995-46 I.R.B. 8
Internal Revenue Service
Revenue Rule
COVERED COMPENSATION TABLES; 1996
Published: November 13, 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; 1996. The covered compensation tables for determining
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 (the "Code") and the Income Tax Regulations, thereunder, for the 1996 plan year.
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 (the "Act") for each year in the 35-year period ending with the year in which the employee attains social security retirement age.
Section 1.401(l)-1(c)(34) of the regulations defines the taxable wage base as the contribution and benefit base under s 230 of the 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 1996 year the taxable wage base is $62,700.
The following tables provide covered compensation for 1996:
1996 COVERED COMPENSATION TABLE
| Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1996 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1996 Covered Comp. | Calendar Year of Birth | Calendar Year of Social Security Retirement Age | 1996 Covered Comp. |
| 1931 1996 27,576 1932 1997 29,232 1933 1998 30,888 1934 1999 32,532 1935 2000 34,188 1936 2001 35,796 1937 2002 37,392 1938 2004 40,536 1939 2005 42,108 1940 2006 43,668 1941 2007 45,204 |
1942 2008 46,692 1943 2009 48,108 1944 2010 49,488 1945 2011 50,844 1946 2012 52,164 1947 2013 53,448 1948 2014 54,588 1949 2015 55,644 1950 2016 56,580 1951 2017 57,444 1952 2018 58,224 |
1953 2019 58,932 1954 2020 59,592 1955 2022 60,720 1956 2023 61,224 1957 2024 61,644 1958 2025 61,980 1959 2026 62,244 1960 2027 62,448 1961 2028 62,592 1962 2029 62,652 1963 or later 2030 62,700 |
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1996 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 - 1939 42,000 1940 - 1941 45,000 1942 - 1944 48,000 |
1945 - 1946 51,000 1947 - 1948 54,000 1949 - 1952 57,000 1953 - 1956 60,000 1957 or Later 62,700 |
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. 95-75, 1995-2 C.B. 39, 1995-46 I.R.B. 8