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26 CFR 1.401(I)-1: Permitted disparity in employer-provided contributions or benefits.
Covered compensation tables for 2000. The covered compensation tables for the year 2000 used for determining contributions to defined benefit plans and permitted disparity are set forth.
This revenue ruling provides tables of covered compensation under section 401(1)-(5)(E) of the Internal Revenue Code (the "Code") and the Income Tax Regulations, thereunder, for the 2000 plan year.
Section 401(1)(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(1)(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(1)-1(c)(34) defines the taxable wage base as the contribution and benefit base under section 230 of the Act.
Section 1.401(1)-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(1)-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 plan year beginning before the 35-year period applicable under section 1.401(1)-1(c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year.
Section 1.401(1)-1(c)(7)(ii) provides that, for purposes of determining the amount of an employee's covered compensation under section 1.401(1)-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 2000 year the taxable wage base is $76,200.
The following tables provide covered compensation for 2000:
2000 COVERED COMPENSATION TABLE
CALENDAR
CALENDAR
YEAR OF
YEAR OF
SOCIAL
SECURITY 2000
COVERED
BIRTH
RETIREMENT
AGE
COMPENSATION
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
37,092
1937
2002
39,072
1938
2004
42,984
1939
2005
44,940
1940
2006
46,896
1941
2007
48,816
1942
2008
50,688
1943
2009
52,488
1944
2010
54,252
1945
2011
55,992
1946
2012
57,708
1947
2013
59,376
1948
2014
60,900
1949
2015
62,340
1950
2016
63,660
1951
2017
64,920
1952
2018
66,072
1953
2019
67,164
1954
2020
68,220
1955
2022
70,116
1956
2023
71,004
1957
2024
71,820
1958
2025
72,528
1959
2026
73,176
1960
2027
73,764
1961
2028
74,304
1962
2029
74,748
1963
2030
75,180
1964
2031
75,564
1965
2032
75,864
1966
2033
76,092
1967 or later
2034
76,200
2000
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 - 1941
48,000
1942 - 1943
51,000
1944
54,000
1945 - 1946
57,000
1947 - 1948
60,000
1949 - 1950
63,000
1951 - 1953
66,000
1954 - 1955
69,000
1956 - 1959
72,000
1960 - 1964
75,000
1965
or later 76,200
The principal author of this revenue ruling is Todd Newman of the
Employee Plans 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).
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