Form 8955-SSA: What you need to know

Form 8955-SSA, known as the Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits, plays a vital role in communicating essential information to the IRS about employees who have separated from a company yet retain vested benefits. The “SSA” in its title indicates the involvement of the Social Security Administration, which utilizes this information to inform former employees about their entitlement to retirement benefits.

Who Must File This Form

If you are a plan sponsor required to file Form 5500 and have employees who have left the organization but still possess vested benefits, you are obligated to file Form 8955-SSA as well.

Additionally, if the status of a terminated participant changes, meaning they either receive their benefits or become ineligible, you must also file this form. It’s essential to adhere to these requirements to ensure compliance with IRS regulations and avoid any potential penalties. Submitting the form is a proactive step to maintain transparency and protect the interests of all parties involved.

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Form 8955-SSA: Why is it important?

Form 8955-SSA is due seven months after the plan year ends, which is the same time Form 5500 is due. It is used to ask for an extension. Both forms are due nine months after the end of the plan year. It is important to keep in mind that Form 8955-SSA is filed with the IRS and Form 5500 is sent to the Department of Labor. It is very important to meet these deadlines in order to avoid any penalties.

There is a lot of information on the IRS website for people who want to access Form 8955-SSA or learn more about the filing process. Also, if managing the administration of a retirement plan seems too hard, companies like Pinnacle Plan Design offer professional help to help you get through the challenges.

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They are a third-party administrator (TPA) that designs and manages qualified retirement plans for employers. Their knowledge covers many types of plans, such as defined benefit plans, 403(b) plans, cash balance plans, and 401(k)/profit-sharing plans. They help employers deal with the complicated issues that come up when managing retirement plans.