rr-25-02.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. 2025-2
This revenue ruling provides tables of covered compensation under
§ 401(l)(5)(E) of the Internal Revenue Code (“Code”) and the Treasury
Regulations thereunder, for the 2025 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 (“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.
Treas. Reg. § 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 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 2025 plan
year, the taxable wage base is $176,100.

The following tables provide covered compensation for 2025.

ATTACHMENT I

2025 UNROUNDED COVERED COMPENSATION TABLE

CALENDAR
CALENDAR YEAR OF 2025 COVERED
YEAR OF
SOCIAL SECURITY COMPENSATION
BIRTH
RETIREMENT AGE UNROUNDED

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 43,992
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 86,052
1955 2022 91,884
1956 2023 95,172
1957 2024 98,616
1958 2025 102,180
1959 2026 105,684
1960 2027 109,140
1961 2028 112,524
1962 2029 115,824
1963 2030 119,100
1964 2031 122,340
1965 2032 125,508
1966 2033 128,580
1967 2034 131,544
1968 2035 134,400
1969 2036 137,124
1970 2037 139,740
1971 2038 142,284
1972 2039 144,804
1973 2040 147,264

1974 2041 149,604
1975 2042 151,848
1976 2043 153,960
1977 2044 155,940
1978 2045 157,920
1979 2046 159,900
1980 2047 161,784
1981 2048 163,572
1982 2049 165,264
1983 2050 166,908
1984 2051 168,552
1985 2052 169,944
1986 2053 171,312
1987 2054 172,548
1988 2055 173,640
1989 2056 174,600
1990 2057 175,428
1991 2058 175,884
1992 and Later 2059 and Later 176,100

ATTACHMENT II

2025 ROUNDED COVERED COMPENSATION TABLE

CALENDAR

2025 COVERED
YEAR OF

COMPENSATION
BIRTH

ROUNDED

1937

$ 39,000
1938 – 1939

45,000
1940

48,000
1941

51,000
1942

54,000
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

93,000
1956 96,000
1957

99,000
1958 102,000
1959

105,000
1960

108,000
1961

114,000
1962

117,000
1963

120,000
1964 123,000
1965

126,000
1966 129,000
1967

132,000
1968 135,000
1969 138,000
1970 – 1971 141,000
1972 144,000
1973 147,000
1974 150,000

1975 – 1976 153,000
1977 156,000
1978 – 1979 159,000
1980 162,000
1981 – 1982 165,000
1983 – 1984 168,000
1985 – 1986 171,000
1987 – 1989 174,000
1990 and Later 176,100

DRAFTING INFORMATION

The principal author of this revenue ruling is Tom Morgan of the Office of
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 revenue
ruling, contact Mr. Morgan at 202-317-6700 (not a toll-free number).