New IRS Filing Requirement for ERISA Retirement Plans

Outlined below is important information regarding a new IRS filing requirement for ERISA retirement plans. Follow up is needed. The new filing is due not later than January 17, 2012.

Background:

  • A new IRS filing requirement has been added for Plan Years beginning on or after January 1, 2009 (2009 and 2010 Plan Years if your plan year coincides with the calendar year). The IRS has recently released a new Form 8955-SSA filing requirement. 
  • The new Form 8955-SSA is established as a stand alone report that is to be filed with the IRS. The filing is independent of the Form 5500 filing requirement. The Form must be filed with the IRS by mailing paper copies to the Department of the Treasury or by filing electronically using the IRS’s Filing Information Returns Electronically system (FIRE).
  • Form 8955-SSA reports information about separated participants with deferred vested benefits (balances) under the retirement plan. The information reported on Form 8955-SSA is forwarded to the Social Security Administration (SSA). The SSA then provides the reported information to separated participants when they file for Social Security benefits. 


Action Required:

As the Plan Administrator for your organization's retirement plan, you must file a Form 8955-SSA for the 2009 and 2010 Plan Years, and annually thereafter. There are two filing options available:

  1. You can self-file the Form 8955-SSA. Additional information is given below.
  2. You can have Envoy TPA and Recordkeeping, Inc. file the Form 8955-SSA on your behalf. This is a fee-based service. The fee is $150.00. Contact us by email with an approval to move forward with the compilation of the signature ready form. 


Information Needed to Self File the Form 8955-SSA:

The are two categories of information that are needed to complete the Form 8955-SSA.

  1. Employment History Reports that detail those employees that separated from service during the plan's 2009 and 2010 Plan Years. (Note that your plan year may or may not coincide with the calendar year. See your Plan Document / Adoption Agreement for the plan year dates.)
  2. Participant Account Balance Reports that detail the terminated employee's vested balance (money in the plan) at the end of the Plan Year in which the employee separated from service. (You should already have a 2009 and 2010 Plan Year Assets by Participant Report on file detailing the needed information as such reports would have been part of the Form 5500 filing exercise for the 2009 and 2010 Plan Years. If you do not have the necessary reporting on file, contact Envoy Financial and it will be forwarded to you via Secure Email.)


Additional Review Materials:

There are three important documents for you to review. Do not be overwhelmed. The information in the documents is understandable and can be thoroughly reviewed in less than an hour. Both the form completion and the filing process that follow are straight forward.

  1. Form 8955-SSA Frequently Asked Questions - start your review by accessing the FAQs page. 
  2. Form 8955-SSA (fillable format) - Both the Form 8955-SSA (fillable format) and the Form 8955-SSA Instructions (PDF) can be found by going to http://www.irs.gov/retirement/article/0,,id=238959,00.html .

 

Do not procrastinate your follow up.  Late filing fees will apply.