Internal Revenue Service
Revenue Ruling
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smRev. Rul. 99-47, 1998-48 I.R.B. 588
Code Sec.401
26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or benefits.
Covered compensation tables for 2000. The covered compensation tables for the year 2000 used for determining contributions to defined benefit plans and permitted disparity are set forth.
REV. RUL. 99-47
This revenue ruling provides tables of covered compensation under section 401(l)(5)(E) of the Internal Revenue Code (the "Code") and the Income Tax Regulations, thereunder, for the 2000 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 section 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(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)(34) defines the taxable wage base as the contribution and benefit base under section 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 section 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 section 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 section 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 2000 year the taxable wage base is $76,200.
The following tables provide covered compensation for 2000:
2000 COVERED COMPENSATION TABLE
CALENDAR CALENDAR SOCIAL SECURITY
YEAR
YEAR
RETIREMENT
OF
OF
2000
BIRTH
RETIREMENT COMPENSATION
------------- ---------------- ------------
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 35,100
1936 2001 37,092
1937 2002 39,072
1938 2004 42,984
1939 2005 44,940
1940 2006 46,896
1941 2007 48,816
1942 2008 50,688
1943 2009 52,488
1944 2010 54,252
1945 2011 55,992
1946 2012 57,708
1947 2013 59,376
1948 2014 60,900
1949 2015 62,340
1950 2016 63,660
1951 2017 64,920
1952 2018 66,072
1953 2019 67,164
1954 2020 68,220
1955 2022 70,116
1956 2023 71,004
1957 2024 71,820
1958 2025 72,528
1959 2026 73,176
1960 2027 73,764
1961 2028 74,304
1962 2029 74,748
1963 2030 75,180
1964 2031 75,564
1965 2032 75,864
1966 2033 76,092
1967 or later 2034 76,200
2000 ROUNDED COVERED COMPENSATION TABLE
Year of Birth Covered Compensation
------------- ------------
1934 $33,000
1935-1936 36,000
1937 39,000
1938 42,000
1939 45,000
1940-1941 48,000
1942-1943 51,000
1944 54,000
1945-1946 57,000
1947-1948 60,000
1949-1950 63,000
1951-1953 66,000
1954-1955 69,000
1956-1959 72,000
1960-1964 75,000
1965 or later 76,200
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. 99-47 1998-48 I.R.B. 588