rr-19-06.pdf

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Part I
Section 401. -- Qualified Pension, Profit-Sharing, and Stock Bonus Plans
26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or
benefits
Rev. Rul. 2019-06
This revenue ruling provides tables of covered compensation under
§ 401(l)(5)(E) of the Internal Revenue Code and the Income Tax
Regulations thereunder, for the 2019 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 2019 year, the
taxable wage base is $132,900.

The following tables provide covered compensation for 2019.

ATTACHMENT I

2019 COVERED COMPENSATION TABLE

CALENDAR
CALENDAR YEAR OF 2019 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

ATTACHMENT I

2019 COVERED COMPENSATION TABLE

CALENDAR
CALENDAR YEAR OF 2019 COVERED
YEAR OF
SOCIAL SECURITY COMPENSATION
BIRTH
RETIREMENT AGE TABLE II

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 43,992
1939 2005 46,344
1940 2006 48,816
1941 2007 51,348
1942 2008 53,952
1943 2009 56,628
1944 2010 59,268
1945 2011 61,884
1946 2012 64,560
1947 2013 67,308
1948 2014 69,996
1949 2015 72,636
1950 2016 75,180
1951 2017 77,880
1952 2018 80,532
1953 2019 83,244
1954 2020 85,920
1955 2022 91,056
1956 2023 93,564
1957 2024 96,000
1958 2025 98,328
1959 2026 100,596
1960 2027 102,804
1961 2028 104,964
1962 2029 107,028
1963 2030 109,080
1964 2031 111,084
1965 2032 113,004
1966 2033 114,852

ATTACHMENT I

2019 COVERED COMPENSATION TABLE

CALENDAR
CALENDAR YEAR OF 2019 COVERED
YEAR OF
SOCIAL SECURITY COMPENSATION
BIRTH
RETIREMENT AGE TABLE II

1967 2034 116,580
1968 2035 118,200
1969 2036 119,700
1970 2037 121,068
1971 2038 122,376
1972 2039 123,660
1973 2040 124,884
1974 2041 126,000
1975 2042 127,008
1976 2043 127,884
1977 2044 128,640
1978 2045 129,384
1979 2046 130,128
1980 2047 130,776
1981 2048 131,328
1982 2049 131,784
1983 2050 132,192
1984 2051 132,600
1985 2052 132,768
1986 and Later 2053 and Later 132,900

ATTACHMENT II

2019 ROUNDED COVERED COMPENSATION TABLE

CALENDAR

2019 COVERED
YEAR OF

COMPENSATION
BIRTH

ROUNDED

1937

$ 39,000
1938 – 1939

45,000
1940

48,000
1941

51,000
1942

54,000

ATTACHMENT II

2019 ROUNDED COVERED COMPENSATION TABLE

CALENDAR

2019 COVERED
YEAR OF

COMPENSATION
BIRTH

ROUNDED

1943

57,000
1944

60,000
1945

63,000
1946 – 1947

66,000
1948

69,000
1949

72,000
1950

75,000
1951

78,000
1952

81,000
1953 84,000
1954

87,000
1955

90,000
1956 93,000
1957

96,000
1958

99,000
1959 – 1960

102,000
1961 105,000
1962 – 1963

108,000
1964

111,000
1965 – 1966

114,000
1967 – 1968

117,000
1969 – 1970

120,000
1971 – 1972

123,000
1973 – 1975 126,000
1976 – 1979 129,000
1980 – 1983 132,000
1984 and Later 132,900

DRAFTING INFORMATION

The principal author of this notice is Tom Morgan of the Office of the Associate
Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes). However, other personnel from the IRS participated in the development

of this guidance. For further information regarding this notice, contact Mr. Morgan
at 202-317-6700 or Gregory K. Davis at 443-853-5590 (not toll-free numbers).