What Is Form 8955-SSA and Who Needs to File It?
A guide for plan administrators on the annual reporting process for separated participants with deferred vested benefits via IRS Form 8955-SSA.
Form 8955-SSA, the Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, is an informational return filed annually with the Internal Revenue Service (IRS). Its function is to report former employees who have left a company but are still entitled to a future retirement benefit from the plan, as mandated by Internal Revenue Code section 6057. The IRS shares this data with the Social Security Administration (SSA), which then notifies individuals about their potential retirement assets when they apply for Social Security benefits.
Determining Your Filing Requirement
The administrator or sponsor of a retirement plan subject to the Employee Retirement Income Security Act (ERISA) must file Form 8955-SSA. This includes most tax-qualified retirement plans, like 401(k)s, profit-sharing plans, and defined benefit pension plans. A filing is triggered when a plan participant separates from service with a “deferred vested benefit,” meaning they have a non-forfeitable right to a future benefit that has not yet been paid.
A filing is required for the plan year in which the employee leaves the company. For instance, if a vested participant terminates employment in 2025 from a calendar-year plan, the sponsor must report them on the 2025 Form 8955-SSA. This is a one-time report for each separated participant unless their status changes, such as when the benefit is paid out.
The requirement to file is linked to the plan’s obligation to file Form 5500, the annual report for employee benefit plans. If a plan has former employees with unpaid vested balances, the plan sponsor must file Form 8955-SSA.
Required Participant and Benefit Information
Plan administrators must gather specific details for each participant being reported. The form requires the participant’s Social Security number, full name, and the value of their vested benefit.
The form uses specific entry codes to report each participant’s status:
- Code A is used to report a participant for the first time.
- Code B indicates that a previously reported participant’s information has been corrected.
- Code C is used when a participant’s benefits were transferred to a new employer’s plan.
- Code D signifies that a previously reported participant has been paid their benefits.
The form also requires plan sponsor information, such as the Employer Identification Number (EIN), plan name, and plan number. Filers must report the total vested benefit amount as of the separation date or plan year-end. For defined contribution plans like 401(k)s, this is the vested account balance, while for defined benefit plans, it is the periodic payment amount.
How to File Form 8955-SSA
Form 8955-SSA is submitted through the IRS’s Filing Information Returns Electronically (FIRE) system. Electronic filing is mandatory for filers who submit 10 or more returns of any type during the calendar year. Using the FIRE system requires a Transmitter Control Code (TCC) from the IRS and specialized software that can create the file in the required format.
The filing deadline for Form 8955-SSA is aligned with the Form 5500 series and is due by the last day of the seventh month following the end of the plan year. For a calendar-year plan, the deadline is July 31. Plan sponsors can file for an automatic 2.5-month extension by submitting Form 5558 by the original due date, which moves the deadline to October 15.
After submitting through the FIRE system, the filer receives an IRS confirmation that serves as proof of filing. A copy of this confirmation and the submitted form should be retained for the plan’s records. The form is filed with the IRS, not the Department of Labor.
Amending a Previously Filed Form
If an error is discovered on a filed Form 8955-SSA, the plan administrator must file an amended return to correct the information. To do this, use a new Form 8955-SSA for the same plan year as the original filing and check the “amended return” box on the form.
An amended return should not include all participants from the original submission. It should only list the specific participants whose information needs to be corrected, such as an incorrect Social Security number or vested benefit amount.
The appropriate entry code must be used to signal the correction, such as Code B for changed participant information. The amended return is filed through the same FIRE system used for the original submission to ensure the SSA’s records are updated accurately.