US · guidance
Rev. Rul. 2025-2, 2025-03 I.R.B. 309
Section 401. — Qualified Pension, Profit-Sharing, and Stock Bonus Plans
This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code (“Code”) and the Treasury Regulations thereunder, for the 2025 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.
Treas. Reg. § 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.
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 2025 plan year, the taxable wage base is $176,100.
The following tables provide covered compensation for 2025.
ATTACHMENT I
2025 UNROUNDED COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH
CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE
2025 COVERED COMPENSATION 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
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
105,684
1960
2027
109,140
1961
2028
112,524
1962
2029
115,824
1963
2030
119,100
1964
2031
122,340
1965
2032
125,508
1966
2033
128,580
1967
2034
131,544
1968
2035
134,400
1969
2036
137,124
1970
2037
139,740
1971
2038
142,284
1972
2039
144,804
1973
2040
147,264
1974
2041
149,604
1975
2042
151,848
1976
2043
153,960
1977
2044
155,940
1978
2045
157,920
1979
2046
159,900
1980
2047
161,784
1981
2048
163,572
1982
2049
165,264
1983
2050
166,908
1984
2051
168,552
1985
2052
169,944
1986
2053
171,312
1987
2054
172,548
1988
2055
173,640
1989
2056
174,600
1990
2057
175,428
1991
2058
175,884
1992 and Later
2059 and Later
176,100
ATTACHMENT II
2025 ROUNDED COVERED COMPENSATION TABLE
CALENDAR YEAR OF BIRTH
2025 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
93,000
1956
96,000
1957
99,000
1958
102,000
1959
105,000
1960
108,000
1961
114,000
1962
117,000
1963
120,000
1964
123,000
1965
126,000
1966
129,000
1967
132,000
1968
135,000
1969
138,000
1970 – 1971
141,000
1972
144,000
1973
147,000
1974
150,000
1975 – 1976
153,000
1977
156,000
1978 – 1979
159,000
1980
162,000
1981 – 1982
165,000
1983 – 1984
168,000
1985 – 1986
171,000
1987 – 1989
174,000
1990 and Later
176,100
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 IRS 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).
History
Revenue Ruling published in Internal Revenue Bulletin 2025-03, January 13, 2025, at page 309. It states no effective date of its own; this row opens at the bulletin's publication date. Filed under I.R.C. § 401 (Section 401. — Qualified Pension, Profit-Sharing, and Stock Bonus Plans).
Provenance
- Source
- irs.gov
- Retrieved
- 2026-09-20
- Edition
- irs-irb-2026-09-20
- Content hash
6f87005fd78a62284e6fe028c09b418bd03eab96c0f17bf5bfb4e286473e2bfd
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