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Rev. Rul. 2017–05


Table of Contents

  • DRAFTING INFORMATION

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 2017 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 2017 year, the taxable wage base is $127,200.

The following tables provide covered compensation for 2017.

ATTACHMENT I
2017 COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE 2017 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
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 80,496
1953 2019 83,052
1954 2020 85,560
1955 2022 90,372
1956 2023 92,724
1957 2024 94,980
1958 2025 97,152
1959 2026 99,264
1960 2027 101,304
1961 2028 103,296
1962 2029 105,204
1963 2030 107,088
1964 2031 108,924
1965 2032 110,700
1966 2033 112,380
1967 2034 113,940
1968 2035 115,392
1969 2036 116,724
1970 2037 117,936
1971 2038 119,088
1972 2039 120,204
1973 2040 121,272
1974 2041 122,220
1975 2042 123,060
1976 2043 123,780
1977 2044 124,368
1978 2045 124,944
1979 2046 125,532
1980 2047 126,024
1981 2048 126,408
1982 2049 126,696
1983 2050 126,948
1984 and Later 2051 and Later 127,200
ATTACHMENT II
2017 ROUNDED COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH   2017 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   78,000
1952   81,000
1953   84,000
1954   87,000
1955   90,000
1956   93,000
1957–1958   96,000
1959   99,000
1960–1961   102,000
1962   105,000
1963–1964   108,000
1965–1966   111,000
1967–1968   114,000
1969–1970   117,000
1971–1973   120,000
1974–1977   123,000
1978–1981   126,000
1982 and Later   127,200

DRAFTING INFORMATION

The principal author of this notice is Tom Morgan of the Office of the Associate Chief Counsel (Tax Exempt and Government Entities). 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 Michael Spaid at 206-946-3480 (not toll-free numbers).