IRS Instruction 8955-SSA – In the complex world of retirement plan administration, staying compliant with IRS regulations is essential for plan sponsors and administrators. One key form that often comes into play is Form 8955-SSA, the Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits. This article breaks down the IRS Instruction 8955-SSA, explaining its purpose, who needs to file, deadlines, and more. Whether you’re a plan administrator handling ERISA-covered plans or simply researching deferred vested benefits, this guide provides clear, up-to-date insights based on official IRS resources.
What Is Form 8955-SSA?
Form 8955-SSA serves as the IRS’s tool for tracking separated participants who are entitled to deferred vested benefits under a retirement plan. It replaced the old Schedule SSA (Form 5500) and is now a standalone form filed directly with the IRS to meet the requirements of Internal Revenue Code section 6057(a). The form helps ensure that when these participants apply for Social Security benefits later in life, the SSA can notify them about any unpaid retirement benefits they may have forgotten about.
This registration statement identifies participants who have left their employer but still have a vested interest in the plan’s benefits, which haven’t been paid out yet. It’s crucial for maintaining accurate records and avoiding penalties for non-compliance.
Purpose of IRS Instruction 8955-SSA
The primary goal of Form 8955-SSA is to report information about each participant who separated from service under the plan and is owed a deferred vested benefit. These benefits could include amounts from defined benefit or defined contribution plans. The IRS shares this data with the Social Security Administration (SSA), which uses it to inform individuals about potential retirement benefits when they file for Social Security.
Key entry codes on the form include:
- Code A: For newly reported separated participants with deferred vested benefits.
- Code B: For corrections or modifications to previously reported information.
- Code C: For participants whose benefits were transferred from another plan.
- Code D: For removing previously reported participants (e.g., due to payment, forfeiture, or transfer out).
This system ensures accurate tracking, especially in cases of plan transfers or changes in participant status.
Who Must File Form 8955-SSA?
Plan administrators of retirement plans subject to the vesting standards under section 203 of ERISA are required to file Form 8955-SSA. This includes most employer-sponsored plans like 401(k)s, pension plans, and even certain 403(b) plans that fall under ERISA.
Exceptions include:
- Plans not covered by ERISA, such as governmental or church plans (though voluntary filing is allowed).
- Deferred vested benefits from pre-2009 annuity contracts or custodial accounts that meet specific conditions (e.g., no employer contributions after issuance and fully vested rights for participants).
If a plan is filing its final Form 5500 for 2025, administrators must still submit Form 8955-SSA to report any remaining deferred vested participants. For single-employer plans, report participants who separated during the plan year with vested benefits. For multiemployer plans, report after two successive one-year breaks in service.
Filing Deadlines for Form 8955-SSA
The standard due date is the last day of the seventh month following the end of the plan year. For calendar-year plans (ending December 31), this means July 31 of the following year. If the due date falls on a weekend or holiday, file on the next business day.
Extensions are available:
- File Form 5558 for up to 2.5 months (electronically via EFAST2 or paper to IRS in Ogden, UT).
- Automatic extension if the plan year matches the employer’s tax year and the employer has an extension (up to 9.5 months maximum).
- Special extensions for disaster areas or combat zones.
For late filings, check IRS FAQs for potential relief or penalties.
How to File Form 8955-SSA?
Electronic filing is encouraged and often mandatory. If you file 10 or more returns of any type with the IRS during the calendar year (including the plan year start), you must e-file Form 8955-SSA via the IRS’s FIRE system. Use approved software vendors or the online fillable form (which generates a barcode for printing if needed).
For paper filing (if allowed), mail to: Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0020
Or use a Private Delivery Service (PDS) to the address in Ogden, UT. Do not attach Form 8955-SSA to Form 5500 or file nonstandard pages.
Key Sections of IRS Instruction 8955-SSA
The instructions provide detailed guidance on completing the form:
- Part I: Enter plan year dates and check boxes for voluntary filing, amendments, or extensions.
- Part II: Provide basic plan information, including name, EIN, PN, sponsor details, and administrator info. Report changes in sponsor or administrator from prior years.
- Part III: List participant details on line 9, including SSN, name, entry code, benefit type (e.g., defined benefit amount or defined contribution balance), and prior plan info if applicable. Use whole dollars and specific codes for annuity types and payment frequencies.
For incomplete records (e.g., uncertain vesting), check the appropriate box. Amendments require filing a new complete form, checking the amended box.
Penalties for Non-Compliance
Failing to file or providing incomplete information can result in significant penalties:
- $10 per day per unreported participant, up to $50,000.
- $10 per day for unreported changes in plan status, up to $10,000.
- $50 for willful failure to provide statements to participants.
Reasonable cause may waive penalties, so consult IRS resources or a professional if issues arise.
Where to Download IRS Instruction 8955-SSA?
For the most current version, download the PDF directly from the IRS website. The Instructions for Form 8955-SSA (2025) are available here: https://www.irs.gov/pub/irs-pdf/i8955ssa.pdf. You can also order printed copies by calling 1-800-TAX-FORM (1-800-829-3676).
Recent Updates and Best Practices
As of 2026, key updates include continued emphasis on mandatory electronic filing for larger filers and clarifications on reporting for plan transfers or final filings. Always check for the latest revisions on IRS.gov, as forms are updated annually. For plan sponsors, working with a third-party administrator like Guideline or TIAA can simplify preparation, ensuring accurate reporting of terminated employees’ vested balances.
In summary, mastering IRS Instruction 8955-SSA ensures compliance and protects participants’ rights to deferred benefits. If you’re dealing with separated participants in your retirement plan, review the form and instructions promptly to avoid delays or penalties. For personalized advice, consult a tax professional or visit IRS.gov for more resources.