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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 2003 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 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 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 2003 year, the taxable wage base is $87,000.
The following tables provide covered compensation for 2003:
2003 COVERED COMPENSATION TABLE CALENDAR CALENDAR YEAR OF 2003 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 39,444 1938 2004 43,968 1939 2005 46,236 1940 2006 48,492 1941 2007 50,724 1942 2008 52,908 1943 2009 55,008 1944 2010 57,096 1945 2011 59,148 1946 2012 61,152 1947 2013 63,132 1948 2014 64,968 1949 2015 66,720 1950 2016 68,352 1951 2017 69,912 1952 2018 71,376 1953 2019 72,780 1954 2020 74,136 1955 2022 76,656 1956 2023 77,856 1957 2024 78,972 1958 2025 79,992 1959 2026 80,952 1960 2027 81,852 2003 COVERED COMPENSATION TABLE CALENDAR CALENDAR YEAR OF 2003 COVERED YEAR OF SOCIAL SECURITY COMPENSATION BIRTH RETIREMENT AGE TABLE II 1961 2028 82,692 1962 2029 83,448 1963 2030 84,180 1964 2031 84,876 1965 2032 85,500 1966 2033 86,028 1967 2034 86,436 1968 2035 86,748 1969 2036 86,940 1970 or later 2037 87,000 2003 ROUNDED COVERED COMPENSATION TABLE YEAR OF BIRTH COVERED COMPENSATION 1937 39,000 1938-1939 45,000 1940 48,000 1941 51,000 1942-1943 54,000 1944 57,000 1945-1946 60,000 1947 63,000 1949-1949 66,000 1950-1951 69,000 1952-1953 72,000 1954 75,000 1955-1957 78,000 1958-1960 81,000 1961-1964 84,000 1965 and later 87,000
The principal author of this revenue ruling is Todd Newman of Employee Plans Customer Education and Outreach of the 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 8:00 a.m. and 6:30 p.m. Eastern time, Monday through Friday (a toll-free number). Mr. Newman's number is (202) 283-9702 (not a toll-free number).