Internal Revenue Service
Revenue Ruling
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smRev. Rul. 2001-55, 2001-47 I.R.B. 497
COVERED COMPENSATION TABLES; 2002
Published: November 19, 2001
Section 401. --Qualified Pension, Profit-Sharing, and Stock Bonus Plans, 26 CFR 1.401(I)-1: Permitted disparity in employer-provided contributions or benefits.
Covered compensation tables; 2002. The covered compensation tables for the year 2002 under section 401 of the Code are provided for use in determining contributions to defined benefit plans and permitted disparity.
This revenue ruling provides tables of covered compensation under § 401(I)(5)(E) of the Internal Revenue Code (the "Code") and the Income Tax Regulations, thereunder, for the 2002 plan year.
Section 401(I)(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(I)(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(I)-1(c)(34) of the regulations defines the taxable wage base as the contribution and benefit base under section 230 of the Act.
Section 1.401(I)-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(I)-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 § 1.401(I)-1(c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year.
Section 1.401(I)-1(c)(7)(ii) provides that, for purposes of determining the amount of an employee's covered compensation under § 1.401(I)-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 2002 year the taxable wage base is $84,900.
The following tables provide covered compensation for 2002:
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2002 COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH CALENDAR YEAR OF SOCIAL 2002 COVERED COMPENSATION
SECURITY RETIREMENT TABLE
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 35,100
1936 2001 37,212
1937 2002 39,444
1938 2004 43,848
1939 2005 46,056
1940 2006 48,252
1941 2007 50,424
1942 2008 52,548
1943 2009 54,588
1944 2010 56,616
1945 2011 58,608
1946 2012 60,552
1947 2013 62,472
1948 2014 64,248
1949 2015 65,940
1950 2016 67,512
1951 2017 69,012
1952 2018 70,416
1953 2019 71,760
1954 2020 73,056
1955 2022 75,456
1956 2023 76,596
1957 2024 77,652
1958 2025 78,612
1959 2026 79,512
1960 2027 80,352
1961 2028 81,132
1962 2029 81,828
1963 2030 82,500
1964 2031 83,136
1965 2032 83,700
1966 2033 84,168
1967 2034 84,516
1968 2035 84,768
1969 or later 2036 84,900
2002 ROUNDED COVERED COMPENSATION TABLE
YEAR OF BIRTH COVERED COMPENSATION
1935-1936 $36,000
1937 39,000
1938-1939 45,000
1940 48,000
1941 51,000
1942-1943 54,000
1944 57,000
1945-1946 60,000
1947-1948 63,000
1949 66,000
1950-1952 69,000
1953-1954 72,000
1955 75,000
1956-1958 78,000
1959-1962 81,000
1963-1966 84,000
1967 and later 84,900
DRAFTING INFORMATION
The principal author of this revenue ruling is Todd Newman of Employee Plans Actuarial Group 1 of the Tax Exempt and Government Entities Division. For further information regarding this revenue ruling, please contact the Employee Plans' taxpayer assistance telephone service at 1-877-829-5500, between the hours of 8:00 a.m. and 9:30 p.m. Eastern time, Monday through Friday (a toll- free number). Mr. Newman's number is (202) 283-9888 (not a toll free number).
Rev. Rul. 2001-55, 2001-47 I.R.B. 497