Form 8955-SSA is used by plan sponsors to report participants who have separated from service and are entitled to deferred vested benefits. The form is typically filed with the plan's Form 5500 and is prepared by the firm that prepares the 5500.
Here are the key steps for completing this form:
- Identify Participants: Report any participant who terminated in a prior year and is still due a vested benefit from the plan as of the reporting date.
- Complete the Form: Fill out Form 8955-SSA with the required information about each participant, including those who:
- Separated from service but have not yet received their vested benefits.
- Had their information previously reported but need corrections.
- Had their benefits transferred to another plan.
- Have been paid out or are no longer entitled to deferred vested benefits.
- File the Form: Submit the form to the IRS. This can be done electronically using the IRS Filing Information Returns Electronically (FIRE) system or on paper3. Some filers are required to file electronically if they meet certain criteria.
- Meet Deadlines: Ensure the form is filed by the last day of the seventh month after the plan year ends, typically July 31 for calendar-year plans. Extensions can be requested using Form 55583.
- Notify Participants: The information reported on Form 8955-SSA is provided to the Social Security Administration (SSA), which then informs participants when they file for social security benefits.
Filing Form 8955-SSA is an important responsibility for plan sponsors to ensure that participants who have separated from service receive their deferred vested benefits. Plan sponsors can effectively fulfill their obligations by accurately identifying eligible participants, ensuring the form is completed with precise information, adhering to filing deadlines, and notifying them. This process not only helps maintain compliance with IRS requirements but also supports participants in securing their future benefits.
If you have any further questions or need additional guidance, please reach out to one of our consultants.
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