Internal Revenue Bulletin:  2014-2 

January 6, 2014 

Rev. Rul. 2014–3


Table of Contents

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 2014 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) 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 the contribution and benefit base after the determination year and before the employee attains social security retirement age.

Section 1.401(l)–1(c)(34) of the Income Tax Regulations (the “Regulations”) 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) of the Regulations 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 2014 year, the taxable wage base is $117,000.

The following tables provide covered compensation for 2014.

ATTACHMENT I
2014 COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE 2014 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 56,628
1944 2010 59,268
1945 2011 61,884
1946 2012 64,560
1947 2013 67,308
1948 2014 69,996
1949 2015 72,600
1950 2016 75,084
1951 2017 77,508
1952 2018 79,824
1953 2019 82,092
1954 2020 84,300
1955 2022 88,536
1956 2023 90,600
1957 2024 92,568
1958 2025 94,440
1959 2026 96,264
1960 2027 98,016
1961 2028 99,720
1962 2029 101,328
1963 2030 102,924
1964 2031 104,472
1965 2032 105,948
1966 2033 107,340
1967 2034 108,600
1968 2035 109,764
1969 2036 110,820
1970 2037 111,732
1971 2038 112,584
1972 2039 113,424
1973 2040 114,192
1974 2041 114,840
1975 2042 115,404
1976 2043 115,824
1977 2044 116,124
1978 2045 116,412
1979 2046 116,700
1980 2047 116,904
1981 and Later 2048 and Later 117,000

ATTACHMENT II
2014 ROUNDED COVERED COMPENSATION TABLE
>CALENDAR YEAR OF BIRTH   2014 COVERED COMPENSATION ROUNDED
1937 $ 39,000  
1938–1939 45,000  
1940 48,000  
1941 51,000  
1942 54,000  
1943 57,000  
1944 60,000  
1945 63,000  
1946–1947 66,000  
1948 69,000  
1949 72,000  
1950 75,000  
1951 78,000  
1952–1953 81,000  
1954 84,000  
1955–1956 90,000  
1957–1958 93,000  
1959 96,000  
1960–1961 99,000  
1962–1963 102,000  
1964–1965 105,000  
1966–1967 108,000  
1968–1970 111,000  
1971–1975 114,000  
1976 and Later 117,000  

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Spaid 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. Spaid may be reached via e-mail at RetirementPlanQuestions@irs.gov.


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