IRS Revenue Ruling
2000-53

Code Sec. 401

<<FULL TEXT>>

26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions
or benefits.

Covered compensation tables; 2001. Covered compensation tables for the
year 2001 are provided for use in determining contributions to defined
benefit plans and permitted disparity.


REV. RUL. 2000-53

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 2001 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 1401(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(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 2001 year the
taxable wage base is $80,400.

The following tables provide covered compensation for 2001:

2001 COVERED COMPENSATION TABLE

CALENDAR CALENDAR YEAR OF 2001 COVERED
YEAR OF SOCIAL SECURITY COMPENSATION
BIRTH RETIREMENT AGE 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 39,312
1938 2004 43,464
1939 2005 45,540
1940 2006 47,616
1941 2007 49,656
1942 2008 51,648
1943 2009 53,568
1944 2010 55,452
1945 2011 57,312
1946 2012 59,148
1947 2013 60,936
1948 2014 62,580
1949 2015 64,140
1950 2016 65,580
1951 2017 66,960
1952 2018 68,232
1953 2019 69,444
1954 2020 70,620
1955 2022 72,756
1956 2023 73,764
1957 2024 74,700
1958 2025 75,528
1959 2026 76,296
1960 2027 77,004
1961 2028 77,664
1962 2029 78,228
1963 2030 78,780
1964 2031 79,284
1965 2032 79,704
1966 2033 80,052
1967 2034 80,280
1968 or later 2035 80,400


2001 ROUNDED COVERED COMPENSATION TABLE

COVERED
YEAR OF BIRTH COMPENSATION
------------- ------------
1934 $33,000
1935-1936 36,000
1937 39,000
1938 42,000
1939 45,000
1940 48,000
1941-1942 51,000
1943-1944 54,000
1945 57,000
1946-1947 60,000
1948-1949 63,000
1950-1951 66,000
1952-1953 69,000
1954-1955 72,000
1956-1959 75,000
1960-1963 78,000
1964 or later 80,400


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, 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).

<<END RULING>>
 

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