IRS Updates Instructions for Form 8955-SSA

The IRS has updated the instructions for Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits. 

Form 8955-SSA is used to report information relating to each participant who separated from service covered by the plan and is entitled to a deferred vested benefit under the plan but is not paid this retirement benefit. The information reported on Forms 8955-SSA generally is given to the Social Security Administration, which provides the reported information to separated participants when they file for Social Security benefits.

More specifically, 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 were 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)).

Terminating Plans

The instructions note that if the 2021 Form 5500 is the final return/report of the plan, the Form 8955-SSA filed for the 2021 plan year must report information on deferred vested participants, including reporting that previously reported deferred vested participants are no longer deferred vested participants.