Internal Revenue Bulletin:  2007-50 

December 10, 2007 

Rev. Rul. 2007-71


Table of Contents

2008 covered compensation tables; permitted disparity. The covered compensation tables under section 401 of the Code for the year 2008 are provided for use in determining contributions to defined benefit plans and permitted disparity.

This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code (the “Code”) and the Income Tax Regulations, thereunder, for the 2008 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 § 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 § 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 § 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 2008 year the taxable wage base is $102,000.

The following tables provide covered compensation for 2008:

ATTACHMENT I
2008 COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE 2008 COVERED COMPENSATION TABLE II
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 43,992
1939 2005 46,344
1940 2006 48,816
1941 2007 51,348
1942 2008 53,952
1943 2009 56,484
1944 2010 58,992
1945 2011 61,476
1946 2012 63,912
1947 2013 66,324
1948 2014 68,580
1949 2015 70,764
1950 2016 72,828
1951 2017 74,820
1952 2018 76,704
1953 2019 78,540
1954 2020 80,328
1955 2022 83,700
1956 2023 85,332
1957 2024 86,880
1958 2025 88,320
1959 2026 89,712
1960 2027 91,044
1961 2028 92,304
1962 2029 93,492
1963 2030 94,656
1964 2031 95,784
1965 2032 96,828
1966 2033 97,788
1967 2034 98,628
1968 2035 99,360
1969 2036 99,984
1970 2037 100,464
1971 2038 100,896
1972 2039 101,304
1973 2040 101,640
1974 2041 101,868
1975 and Later 2042 102,000
2008 Rounded Covered Compensation Table
Year of Birth Covered Compensation
1937 39,000
1938 - 1939 45,000
1940 48,000
1941 51,000
1942 54,000
1943 57,000
1944 - 1945 60,000
1946 63,000
1947 66,000
1948 69,000
1949 - 1950 72,000
1951 75,000
1952 - 1953 78,000
1954 81,000
1955 - 1956 84,000
1957 - 1958 87,000
1959 - 1960 90,000
1961 - 1962 93,000
1963 - 1965 96,000
1966 - 1970 99,000
1971 and Later 102,000

DRAFTING INFORMATION

The principal author of this revenue ruling is Wayne Bradley of the Employee Plans, 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 8:30 a.m. and 4:30 p.m. Eastern time, Monday through Friday (a toll-free number). Mr. Bradley may be reached via e-mail at RetirementPlanQuestions@irs.gov.


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