Rev. Rul. 98-53, 1998-46 I.R.B. 12.
Internal Revenue Service
Revenue Ruling
COVERED COMPENSATION TABLES; 1999
Published: November 16, 1998
Section 401. - Qualified Pension, Profit-Sharing, and Stock Bonus Plans, 26 CFR 1.401(t)-1: Permitted disparity with respect to employer-provided contributions or benefits.
Covered compensation tables; 1999. The covered compensation tables for the 1999 calendar year for determining, contributions to defined benefit plans and permitted disparity are set forth.
This revenue ruling provides tables of covered compensation under § 401(1)(5)(E) of the Internal Revenue Code (the "Code") and the Income Tax Regulations, thereunder, for the 1999 plan year.
Section 401(1)(5)(E)(i) 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 (the "Act") for each year in the 35-year period ending with the year in which the employee attains social security retirement age.
Section 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.
Section 1.401(1)-1(c)(34) of the regulations defines the taxable wage base as the contribution and benefit base under § 230 of the Act.
Section 1.401(1)-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 § 1.401(1)-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 this § 1.401(1)-1(c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year.
Section 1.401(1)-1(c)(7)(ii) provides that, for purposes of determining the amount of an employee's covered compensation under § 1.401(1)-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 1999 year the taxable wage base is $72,600.
The following tables provide covered compensation for 1999:
1999
Covered Compensation Table
Calendar Year of Birth Calendar Year of
Social 1999 Covered Compensation
Security
Retirement Age
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
22,716
1929 1994
24,312
1930 1995
25,920
1931 1996
27,576
1932 1997
29,304
1933 1998
31,128
1934 1999
33,060
1935 2000
34,992
1936 2001
36,888
1937 2002
38,772
1938 2004
42,468
1939 2005
44,328
1940 2006
46,176
1941 2007
47,988
1942 2008
49,752
1943 2009
51,456
1944 2010
53,124
1945 2011
54,768
1946 2012
56,364
1947 2013
57,936
1948 2014
59,352
1949 2015
60,684
1950 2016
61,920
1951 2017
63,060
1952 2018
64,116
1953 2019
65,112
1954 2020
66,060
1955 2022
67,752
1956 2023
68,544
1957 2024
69,240
1958 2025
69,852
1959 2026
70,404
1960 2027
70,884
1961 2028
71,316
1962 2029
71,664
1963 2030
71,988
1964 2031
72,264
1965 2032
72,480
1966 or
later
2033
72,600
1999 Rounded Covered Compensation Table
Year of Birth Covered
Compensation
1934
33,000
1935 -
1936 36,000
1937
39,000
1938
42,000
1939 -
1940 45,000
1941
48,000
1942 -
1943 51,000
1944 -
1945 54,000
1946 -
1947 57,000
1948 -
1949 60,000
1950 -
1952 63,000
1953 -
1954 66,000
1955 -
1959 69,000
1960 -
1964 72,000
1965 or
later 72,600
Drafting Information
The principal author of this revenue ruling is Todd Newman of the Employee Plans Division. For further information regarding this revenue ruling, call (202) 622-6076 between 2:30 and 3:30 eastern time (not a toll free number) Monday thru Thursday. Mr. Newman's number is (202) 622-8458 (also not a toll free number).
Rev. Rul. 98-53, 1998-46 I.R.B. 12.