Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

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

The following tables provide covered compensation for 2001:

Section 401.—Qualified Pension, Profit-Sharing, and Stock Bonus Plans

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 § 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

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

November 20, 2000 488 2000–47 I.R.B.

2001 COVERED COMPENSATION TABLE—continued

CALENDAR CALENDAR YEAR OF 2001 COVERED YEAR OF SOCIAL SECURITY COMPENSATION BIRTH RETIREMENT AGE TABLE II 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

2000–47 I.R.B. 489 November 20, 2000

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).

November 20, 2000 490 2000–47 I.R.B.