Glitch Blamed for Erroneous Late Filing Form 8955-SSA Notices

An apparent electronic glitch with a regulatory filing system is causing confusion.

More specifically, the American Retirement Association (ARA) is hearing from many members regarding erroneous 2022 8955-SSA late filing notices. 

It appears that several plan sponsors for whom complete Form 8955-SSAs were filed through the EFAST2 filing system before the 7/31/2023 filing date (i.e., filed before the due date without extension) are receiving an IRS notice saying the 2022 8955-SSAs were not filed in a timely manner or were incomplete.   

ARA immediately contacted the IRS to report this issue and provide the information necessary for the agency to assess and resolve the matter. 

“We are thankful that the IRS takes reports such as this seriously and, we understand that they immediately began an internal analysis, which is ongoing,” Kelsey Mayo, ARA’s Outside Director of Regulatory Affairs for the American Retirement Association, said. 

She added that if a systemic issue is uncovered, the IRS will often issue a special newsletter addressing the issue.   

For example, as ARA previously reported, the IRS issued a newsletter in 2021 telling sponsors to disregard erroneous extension notices. If the IRS concludes a similar systemic issue occurred here, Mayo and ARA expect that the agency will issue additional guidance on how to proceed.   

Background 

Form 8955-SSA is a required annual filing with the IRS for those who must file a Form 5500 with the Department of Labor. The filing deadline for Form 8955-SSA is the same as Form 5500.   

The form is used to report concerning participants who separate from service with a deferred vested benefit but who did not receive full distribution of their benefit. 

“One issue that has arisen is that according to some, plan sponsors sometimes neglect to update reporting on the forms for subsequent distributions, which may result in notification to participants of benefits that do not actually exist anymore,” ARA Chief Legal Officer Allison Wielobob explained. 

The Form 8955-A information reported to the IRS is shared with the Social Security Administration. At retirement age, the SSA notifies affected individuals that they may have benefits under the retirement plans of prior employers.