# Rev. Rul. 2017-5: 26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or benefits

> Federal · IRS revenue rulings · In force

URL: https://www.frixlaw.com/law-library/statutes/IRS_RR_2017_5

## Section

- **Citation:** Rev. Rul. 2017-5
- **Heading:** 26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or benefits
- **Jurisdiction:** Federal
- **Kind:** IRS revenue rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Internal Revenue Bulletin / IRB 2017 / Revenue Ruling / Rev. Rul. 2017-5

## Text

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. 2017-05
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
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
CALENDAR YEAR OF
2017 COVERED
YEAR OF
SOCIAL SECURITY
COMPENSATION
BIRTH
RETIREMENT AGE
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
1
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
2017 COVERED COMPENSATION TABLE
CALENDAR
CALENDAR YEAR OF
2017 COVERED
YEAR OF
SOCIAL SECURITY
COMPENSATION
BIRTH
RETIREMENT AGE
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
69,996
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
ATTACHMENT I
2017 COVERED COMPENSATION TABLE
CALENDAR
CALENDAR YEAR OF
2017 COVERED
YEAR OF
SOCIAL SECURITY
COMPENSATION
BIRTH
RETIREMENT AGE
TABLE II
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
2017 COVERED
Y
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
2017 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
ATTACHMENT II
2017 ROUNDED COVERED COMPENSATION TABLE
CALENDAR
2017 COVERED
YEAR OF
COMPENSATION
BIRTH
ROUNDED

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).

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_RR_2017_5. Check the current official text before relying on it. Not legal advice.