rr-26-01.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. 2026-1
This revenue ruling provides tables of covered compensation under
section 401(l)(5)(E) of the Internal Revenue Code for the 2026 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.
Section 1.401(l)-1(c)(34) of the Treasury Regulations (“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) of the Regulations 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 2026 year, the
taxable wage base is $184,500.

The following tables provide covered compensation for 2026.

ATTACHMENT I

2026 UNROUNDED COVERED COMPENSATION TABLE

CALENDAR
CALENDAR YEAR OF 2026 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

CALENDAR
CALENDAR YEAR OF 2026 COVERED
YEAR OF
SOCIAL SECURITY COMPENSATION
BIRTH
RETIREMENT AGE UNROUNDED

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 105,924
1960 2027 109,620
1961 2028 113,244
1962 2029 116,784
1963 2030 120,300
1964 2031 123,780
1965 2032 127,188
1966 2033 130,500
1967 2034 133,704

CALENDAR
CALENDAR YEAR OF 2026 COVERED
YEAR OF
SOCIAL SECURITY COMPENSATION
BIRTH
RETIREMENT AGE UNROUNDED

1968 2035 136,800
1969 2036 139,764
1970 2037 142,620
1971 2038 145,404
1972 2039 148,164
1973 2040 150,864
1974 2041 153,444
1975 2042 155,928
1976 2043 158,280
1977 2044 160,500
1978 2045 162,720
1979 2046 164,940
1980 2047 167,064
1981 2048 169,092
1982 2049 171,024
1983 2050 172,908
1984 2051 174,792
1985 2052 176,424
1986 2053 178,032
1987 2054 179,508
1988 2055 180,840
1989 2056 182,040
1990 2057 183,108
1991 2058 183,804
1992 2059 184,260
1993 and later 2060 and later 184,500

ATTACHMENT II

2026 ROUNDED COVERED COMPENSATION TABLE

CALENDAR

2026 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

111,000
1961

114,000
1962

117,000
1963

120,000
1964 123,000
1965

126,000
1966 132,000
1967

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

CALENDAR

2026 COVERED
YEAR OF

COMPENSATION
BIRTH

ROUNDED

1974 153,000
1975 156,000
1976 159,000
1977 – 1978 162,000
1979 165,000
1980 – 1981 168,000
1982 171,000
1983 – 1984 174,000
1985 – 1986 177,000
1987 – 1988 180,000
1989 – 1990 183,000
1991 and later 184,500

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 Internal Revenue
Service 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).