IRS Issues 2020 Instructions for Form 8955-SSA

The IRS has issued the Instructions for Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, to be used for filing concerning the 2020 plan year. 

Form 8955-SSA is used to satisfy the reporting requirements of Internal Revenue Code Section 6057(a). It is used to report information relating to each participant covered by the plan who separated from service and is entitled to a deferred vested benefit under the plan but is not paid this retirement benefit. The plan administrator of each plan subject to the vesting requirements must file Form 8955-SSA for participants who have a deferred vested benefit under the plan and: 

• separated from service covered by the plan, but vested retirement benefits are not paid and were not previously reported (using Entry Code A in Part III, line 9, column (a)); 
• were previously reported under the plan but whose information is being corrected (using Entry Code B in Part III, line 9, column (a)); 
• were previously reported as deferred vested participants on another plan’s filing if their benefits were transferred (other than in a rollover) to the plan of a new employer during the covered period (using Entry Code C in Part III, line 9, column (a); or 
• were previously reported under the plan but have been paid out or are no longer entitled to those deferred vested benefits (using Entry Code D in Part III, line 9, column (a)).

What’s New 

The following changes have been made to the Form 8955-SSA for 2020 filings.

• The instructions under Purpose of Form have been revised to clarify how the form is to be used to report information about deferred vested participants using the correct entry codes. 
• The note of caution under How To File has been revised to clarify that no attachments are allowed with Form 8955-SSA. 
• The instructions under Transfer of a Participant’s Benefit to the Plan of a New Employer have been revised to clarify that the new plan administrator must complete a Form 8955-SSA using Entry Code C, except in the rare situation where the previous plan number and employer identification number (EIN) are not available; then, Entry Code A would be used.