Pension plans are designed to provide employees with financial security for the future. While employees contribute regularly and leave those funds untouched until retirement, it’s the employer’s responsibility to ensure that both employees and their beneficiaries receive the benefits they are entitled to—even after employment ends.
To safeguard these rights, the IRS requires certain filings under the Employee Retirement Income Security Act of 1974 (ERISA). One of the most important is Form 8955-SSA, which helps track deferred vested benefits for former employees.
What Is IRS Form 8955-SSA?
Form 8955-SSA is the official registration statement ERISA plan administrators must file with the IRS. It reports information about participants who:
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Have left the plan but still have deferred vested benefits, or
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Are entitled to benefits payable in the future.
Once filed, the IRS forwards the information to the Social Security Administration (SSA). The SSA then notifies participants or their beneficiaries about any retirement benefits they may be eligible to claim.
Who Must File Form 8955-SSA and When?
Any employer who is required to file Form 5500 and has participants with deferred vested benefits must also file Form 8955-SSA.
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Deadline: The last day of the 7th month after the plan year ends.
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Extension: Up to 2.5 months by filing Form 5558.
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No Activity: If no participants with deferred vested benefits exist in a given year, the form does not need to be filed.
What Information Does the Form Contain?
Form 8955-SSA requires:
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Plan name, sponsor, and administrator details.
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Participant information (Social Security Number, entry codes, and vested amounts).
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Reasons for separation (voluntary, involuntary, etc.).
These details ensure that deferred benefits are properly tracked and later distributed.
Who Qualifies Under Form 8955-SSA?
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Single-employer plans: Participants who leave employment but still have vested benefits.
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Multi-employer plans: Participants who incur two consecutive one-year breaks in service while still eligible for vested benefits.
Participants already reported in prior filings may also appear if corrections, deletions, or updates are needed.
Filing Options and E-Filing (FIRE System)
While paper filing is still accepted, the IRS encourages electronic filing through its Filing Information Returns Electronically (FIRE) system.
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Employers must request a Transmitter Control Code (TCC) using Form 4419 before filing electronically.
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A single TCC can be used for multiple client plans.
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Signatures are not required for e-filing but should be retained in paper form for records.
Penalties for Late or Incorrect Filing
The IRS may impose penalties if administrators:
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Fail to file: $1 per participant per day (up to $5,000).
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Fail to report plan changes: $1 per participant per day (up to $1,000).
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Provide inaccurate participant statements: $50 per member.
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Late filing without reasonable cause: $25 per day.
Penalties may be waived if administrators demonstrate reasonable cause for the failure.
Key Takeaways
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Form 8955-SSA is crucial for ensuring employees and beneficiaries receive their deferred vested benefits.
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It works alongside Form 5500 but is filed separately.
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Employers should strongly consider e-filing for faster processing and accuracy.
8955-SSA Filing Solutions
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