Who is required to file 8955 ssa

The form must include the social security number, name, and vested benefit due for each participant who is required to be reported. The form includes a way to update previously reported information to reflect that a participant has taken a full distribution and no longer has any benefit due from the plan. Although this reporting is optional, we highly recommend doing it, as we explain below.

When individuals apply for Social Security benefits, SSA queries its database and notifies applicants that they are entitled to benefits from the plan. This is why we suggest un-reporting former employees once they have taken a full distribution. Although it is a completely separate, stand-alone form, the deadline for filing the Form SSA is the same as the deadline to file Form , i. DWC electronically files the forms on behalf of its clients in a batch submission. All you have to do is approve the draft that we send you for review.

There are actually four types of penalties that could apply to a late filing. The two most likely to apply are as follows:. Additional information about these penalties is available on the IRS website here. According to the IRS website, you should not voluntarily mail in any payment of penalties.

If they decide to assess a penalty, they will contact you directly with details. There has been an increase in telephone scams in which a caller claims to be from the IRS and demands payment of a penalty.

It is important to note that in the event a penalty is assessed, the contact you receive from the IRS will be by letter sent via U. Sort of, but not really. For a calendar-year plan, this date is July The IRS may from time to time announce special extensions of time under certain circumstances, such as extensions for presidentially declared disasters or for service in, or in support of, the Armed Forces of the United States in a combat zone.

See IRS. You must only use the "Special extension" box for extensions announced by the IRS, such as extensions for presidentially-declared disasters or for service in, or in support of, the Armed Forces of the United States in a combat zone. See the instructions "Other Extensions of Time to File" for more information. Form SSA should be filed to satisfy the Code section reporting obligations even for years before See Announcement PDF.

Ogden, UT Beginning with the Form SSA, for statements with filing deadlines on or after July 31, , some filers are required to electronically file the form. You must electronically file the Form SSA using the FIRE system if the plan administrator or sponsor is required to file at least returns of any type during the calendar year.

See 26 CFR The IRS will generally grant a waiver in exceptional cases if the filer can demonstrate that undue economic hardship would occur by complying with the electronic filing requirement, including a demonstration of any incremental costs the filer would incur in filing electronically rather than using a paper form.

See Revenue Procedure for details on requesting the hardship waiver. Only people transmitting electronic forms to FIRE will need credentials, so if a third-party service provider is used, it's unlikely that plan sponsors and plan administrators will need credentials.

If a third-party service provider is not used, the plan administrator will need to obtain a TCC and set up a FIRE account to submit the electronic files generated by third-party software to FIRE and to check the status of submitted filings. If the plan administrator and the plan sponsor are the same person, that person should sign as plan administrator.

Electronic signatures are not required for electronically filed Forms SSA. The name of the administrator or sponsor should be typed into the signature line. Although we prefer original signatures in ink, we will also accept scanned, copied and faxed signatures as well as original signatures in pencil.

It depends. You will need to report the participant information in Part III of the Form SSA using Code D if they were previously reported by you as a separated participant with deferred vested benefits. Also, you will need to report a participant that had commenced receiving benefits if that participant later becomes a deferred vested participant.

For example, a separated participant who has been receiving benefits stops receiving benefits but is still entitled to a deferred vested benefit under the plan. Thus, the separated participant becomes a deferred vested participant and should be reported on Form SSA using Code A. In this case, the plan administrators of both the transferor plan original plan and the transferee plan new plan should report information regarding the deferred vested participant. The administrator of the original plan must report on Part III, Line 9, using Entry Code D, removing the information previously reported under the plan for deferred vested participants, indicating that the deferred vested participant's benefits have been transferred to another plan, and this participant is no longer entitled to those deferred vested benefits under the original plan.

Practice Management. 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.

Ted Godbout. Nevin E. Adams , JD. October a Treat for Pension Plan Funding.