rr-11-03.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. 2011-3

This revenue ruling provides tables of covered compensation under
§ 401(1)(5)(E) of the Internal Revenue Code (the "Code") and the Income
Tax Regulations thereunder, for the 2011 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) 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.

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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 2011 year, the
taxable wage base is $106,800.

The following tables provide covered compensation for 2011.

# ATTACHMENT I 2011 COVERED COMPENSATION TABLE

CALENDAR YEAR OF BIRTH

CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE

2011 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

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# ATTACHMENT I

2011 COVERED COMPENSATION TABLE

CALENDAR YEAR OF BIRTH

CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE

2011 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

64,464

1947

2013

67,008

1948

2014

69,408

1949

2015

71,724

1950

2016

73,920

1951

2017

76,044

1952

2018

78,084

1953

2019

80,052

1954

2020

81,972

1955

2022

85,620

1956

2023

87,384

1957

2024

89,064

1958

2025

90,660

1959

2026

92,184

1960

2027

93,648

1961

2028

95,052

1962

2029

96,372

1963

2030

97,680

1964

2031

98,940

1965

2032

100,116

1966

2033

101,220

1967

2034

102,192

1968

2035

103,068

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## ATTACHMENT I

2011 COVERED COMPENSATION TABLE

CALENDAR YEAR OF BIRTH

CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE

2011 COVERED COMPENSATION TABLE II

1969

2036

103,824

1970

2037

104,448

1971

2038

105,012

1972

2039

105,552

1973

2040

106,032

1974

2041

106,392

1975

2042

106,656

1976 and Later

2043 and Later

106,800

### ATTACHMENT II 2011 ROUNDED COVERED COMPENSATION TABLE

CALENDAR YEAR OF BIRTH

2011 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 - 1946

63,000

1947

66,000

1948

69,000

1949

72,000

1950 - 1951

75,000

1952

78,000

1953 - 1954

81,000

1955 - 1956

87,000

1957 - 1958

90,000

1959 - 1960

93,000

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# ATTACHMENT II

## 2011 ROUNDED COVERED COMPENSATION TABLE

CALENDAR YEAR OF BIRTH

2011 COVERED COMPENSATION ROUNDED

1961 - 1962

96,000

1963 - 1965

99,000

1966 - 1968

102,000

1969 - 1972

105,000

1973 and Later

106,800

# DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Spaid of the Employee
Plans, Tax Exempt and Government Entities Division. For further information
regarding this revenue ruling, please contact the Employee Plans taxpayer
assistance telephone service at 1-877-829-5500, between the hours of 8:30 a.m.
and 4:30 p.m. Eastern time, Monday through Friday (a toll-free number). Mr.
Spaid may be reached via e-mail at RetirementPlanQuestions@irs.gov.