rr-09-02.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. 2009-02
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 2009 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) 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) 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
35year 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 2009 year the taxable
wage base is $106,800.

The following tables provide covered compensation for 2009:

ATTACHMENT I

2009 COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH
CALENDAR YEAR OF
SOCIAL SECURITY
RETIREMENT AGE
2009 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 64,464
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
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 106,800

ATTACHMENT II

2009 ROUNDED COVERED COMPENSATION TABLE

CALENDAR
YEAR OF
BIRTH
2009 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
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.