rr-13-02.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. 2013-2
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 2013 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 the contribution and benefit
base 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 2013 year, the
taxable wage base is $113,700.

The following tables provide covered compensation for 2013.

ATTACHMENT I

2013 COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH

CALENDAR YEAR OF
SOCIAL SECURITY
RETIREMENT AGE

2013 COVERED
COMPENSATION
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

ATTACHMENT I

2013 COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH

CALENDAR YEAR OF
SOCIAL SECURITY
RETIREMENT AGE

2013 COVERED
COMPENSATION
TABLE II

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 69,900
1949 2015 72,408
1950 2016 74,808
1951 2017 77,124
1952 2018 79,356
1953 2019 81,528
1954 2020 83,640
1955 2022 87,684
1956 2023 89,652
1957 2024 91,524
1958 2025 93,312
1959 2026 95,040
1960 2027 96,696
1961 2028 98,304
1962 2029 99,816
1963 2030 101,316
1964 2031 102,780
1965 2032 104,160
1966 2033 105,444
1967 2034 106,620
1968 2035 107,700

ATTACHMENT I

2013 COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH

CALENDAR YEAR OF
SOCIAL SECURITY
RETIREMENT AGE

2013 COVERED
COMPENSATION
TABLE II

1969 2036 108,648
1970 2037 109,464
1971 2038 110,232
1972 2039 110,964
1973 2040 111,648
1974 2041 112,200
1975 2042 112,668
1976 2043 113,004
1977 2044 113,196
1978 2045 113,400
1979 2046 113,592
1980 and Later 2047 and Later 113,700

ATTACHMENT II

2013 ROUNDED COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH

2013 COVERED
COMPENSATION
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 - 1952 78,000
1953 81,000

ATTACHMENT II

2013 ROUNDED COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH

2013 COVERED
COMPENSATION
ROUNDED

1954 84,000
1955 87,000
1956 90,000
1957 – 1958 93,000
1959 – 1960 96,000
1961 – 1962 99,000
1963 – 1964 102,000
1965 – 1966 105,000
1967 – 1970 108,000
1971 – 1974 111,000
1975 and Later 113,700

DRAFTING INFORMATION
The principal author of this revenue ruling is Michael Spaid of the Employee
Plans, Tax Exempt and Government Entities Division. Mr. Spaid may be
reached via e-mail at RetirementPlanQuestions@irs.gov.