Rev. Rul. 98-53

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) of 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) 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 this section 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 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 1999 year the taxable wage base is $72,600.

The following tables provide covered compensation for 1999:

                   1999 COVERED COMPENSATION TABLE

Calendar              Calendar Year of            1999 Covered
Year of               Social Security             Compensation
Birth                 Retirement Age
________              _______________             ____________

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                     34,992
1936                       2001                     36,888
1937                       2002                     38,772
1938                       2004                     42,468
1939                       2005                     44,328
1940                       2006                     46,176
1941                       2007                     47,988
1942                       2008                     49,752
1943                       2009                     51,456
1944                       2010                     53,124
1945                       2011                     54,768
1946                       2012                     56,364
1947                       2013                     57,936
1948                       2014                     59,352
1949                       2015                     60,684
1950                       2016                     61,920
1951                       2017                     63,060
1952                       2018                     64,116
1953                       2019                     65,112
1954                       2020                     66,060
1955                       2022                     67,752
1956                       2023                     68,544
1957                       2024                     69,240
1958                       2025                     69,852
1959                       2026                     70,404
1960                       2027                     70,884
1961                       2028                     71,316
1962                       2029                     71,664
1963                       2030                     71,988
1964                       2031                     72,264
1965                       2032                     72,480
1966 or later              2033                     72,600

               1999 ROUNDED COVERED COMPENSATION TABLE

Year of Birth                     Covered Compensation
_____________                     ____________________

1934                                       33,000
1935-1936                                  36,000
1937                                       39,000
1938                                       42,000
1939-1940                                  45,000
1941                                       48,000
1942-1943                                  51,000
1944-1945                                  54,000
1946-1947                                  57,000
1948-1949                                  60,000
1950-1952                                  63,000
1953-1954                                  66,000
1955-1959                                  69,000
1960-1964                                  72,000
1965 or later                              72,600

DRAFTING INFORMATION

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).