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Internal Revenue Bulletin:  2014-52 

December 22, 2014 

Rev. Rul. 2014–34


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 2015 plan year.

Section 401(l)(5)(E)(i) of the Code 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) 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) of the Regulations 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) of the Regulations is the taxable wage base in effect as of the beginning of the plan year.

Section 1.401(l)–1(c)(7)(ii) of the Regulations provides that, for purposes of determining the amount of an employee’s covered compensation under § 1.401(l)–1(c)(7)(i) of the Regulations, 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 2015 year, the taxable wage base is $118,500.

The following tables provide covered compensation for 2015.

ATTACHMENT I
2015 COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE 2015 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 72,636
1950 2016 75,180
1951 2017 77,640
1952 2018 80,004
1953 2019 82,308
1954 2020 84,564
1955 2022 88,884
1956 2023 90,984
1957 2024 93,000
1958 2025 94,920
1959 2026 96,780
1960 2027 98,580
1961 2028 100,320
1962 2029 101,964
1963 2030 103,608
1964 2031 105,204
1965 2032 106,716
1966 2033 108,144
1967 2034 109,464
1968 2035 110,664
1969 2036 111,756
1970 2037 112,716
1971 2038 113,616
1972 2039 114,492
1973 2040 115,308
1974 2041 116,004
1975 2042 116,604
1976 2043 117,072
1977 2044 117,408
1978 2045 117,744
1979 2046 118,080
1980 2047 118,320
1981 2048 118,452
1982 and Later 2049 and Later 118,500
ATTACHMENT II
2015 ROUNDED COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH   2015 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   93,000
1958–1959   96,000
1960–1961   99,000
1962   102,000
1963–1964   105,000
1965–1967   108,000
1968–1969   111,000
1970–1973   114,000
1974–1978   117,000
1979 and Later   118,500

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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