IRS Form 8955-SSA Guide: Deferred Vested Benefits Report

Introduction – What Is Form 8955-SSA?

IRS Form 8955-SSA, titled Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, is a regulatory tax return administered by the Internal Revenue Service (IRS) in coordination with the Social Security Administration (SSA). It is governed by Section 6057(a) of the Internal Revenue Code (IRC).

This form is used by retirement plan administrators to report information about former employees who left the company but still have vested retirement money left behind in the plan. By capturing this data, the federal government creates a permanent record ensuring workers can be reunited with their retirement savings later in life.

Purpose of the Form – Why Does Form 8955-SSA Exist?

Over a modern career, workers frequently change employers, relocate, and lose track of retirement accounts from earlier jobs. Without a centralized tracking mechanism, billions of dollars in vested 401(k) and pension balances would sit abandoned indefinitely.

Form 8955-SSA solves this problem by acting as an information bridge between employers, the IRS, and the Social Security Administration. When a plan administrator submits this form, the IRS securely forwards the participant records to the SSA. When that individual eventually applies for Social Security retirement benefits, the SSA automatically cross-references its database and notifies them of their forgotten pension or 401(k) savings.

Who Needs to File This Form?

Form 8955-SSA must be filed by the plan administrator of any employee retirement benefit plan subject to the vesting standards of the Employee Retirement Income Security Act (ERISA) and IRC Section 6057(a). Qualifying plans include:

• Defined Contribution Plans: 401(k) plans, profit-sharing plans, and money purchase pension plans.
• Defined Benefit Plans: Traditional employer pension plans and cash balance plans.
• 403(b) Plans: Annuity and retirement plans sponsored by public schools and 501(c)(3) tax-exempt organizations subject to ERISA.

The filing is triggered when an employee separates from service and is entitled to a deferred vested benefit under the plan, but has not yet received a complete payout. It is also required when a plan needs to report changes, corrections, or deletions for participants reported on previous filings.

Who Is Exempt / Not Required to File?

Not every retirement program or situation triggers Form 8955-SSA. A plan administrator is exempt or not required to file under the following conditions:

• Governmental and Church Plans: State, local, and federal government plans, as well as church plans that have not elected ERISA coverage under Section 410(d).
• Zero Reportable Participants: Plans that had no participants separate with deferred vested benefits during the reporting cycle and have no updates or removals to report from past filings.
• Individual Account Plans: Non-employer plans such as traditional IRAs, Roth IRAs, SEPs, and SIMPLE IRAs.
• Non-Vested Departures: Employees who left the company with zero percent vesting and forfeited their unvested employer contributions.
• Immediate Payouts: Separated workers who received a complete lump-sum distribution or executed a complete rollover into an IRA or new employer plan before the filing deadline.

When to File Form 8955-SSA

Form 8955-SSA is an annual filing. It is generally due by the last day of the seventh month following the close of the plan year (July 31 for calendar-year retirement plans).

If you need extra time, you can obtain a one-time 2½ month extension by filing Form 5558 on or before the regular due date, moving the calendar-year deadline to October 15. Additionally, Treasury regulations offer flexible timing: a plan generally has until the filing deadline for the plan year following the year of separation to report a participant, allowing administrators time to see if the worker requests an immediate rollover or cash-out.

Where and How to File

Unlike Form 5500, Form 8955-SSA cannot be filed through the Department of Labor’s EFAST2 portal. Because Form 8955-SSA contains sensitive participant Social Security numbers, it must be transmitted directly to the IRS.

• Electronic Filing: Most plan administrators and third-party administrators (TPAs) file electronically through the IRS Filing Information Returns Electronically (FIRE) system using approved commercial tax software.
• Paper Filing: If filing on paper, you cannot use standard photocopies. You must submit an official, scannable optical character recognition (OCR) paper form mailed to the designated IRS address as per instructions for Form 8955-SSA.

Step-by-Step Instructions to Fill Form 8955-SSA

Form 8955-SSA is organized into plan identification headers followed by detailed participant schedules.

Plan and Administrator Identification

Enter the plan sponsor’s legal business name, Employer Identification Number (EIN), and mailing address. Provide the plan administrator’s contact information, the official Plan Name, the three-digit Plan Number (such as 001), and the exact beginning and ending dates of the plan year.

Part III – Participant Records and Entry Codes

The core of Form 8955-SSA is Part III, where individual separated workers are cataloged using specific IRS entry codes:

Entry Code	Reporting Purpose	Action Required
Code A	Add a new participant	Used to report a separated worker with deferred vested benefits who has not been reported on any previous Form 8955-SSA or Schedule SSA.
Code B	Update or correct information	Used to modify previously reported participant data, such as a legal name change, updated address, or corrected benefit balance.
Code C	Delete a previously reported participant	Used when a previously reported worker is no longer entitled to benefits because they took a full distribution, rolled over their balance, or passed away.
Code D	Delete an erroneous report	Used to remove a participant who was reported on a previous filing completely in error (e.g., they never actually separated or were not vested).

For each participant listed, you must provide their full Social Security Number, legal name, type of annuity or payment option, payment frequency, and the dollar value of their vested benefit (or their account balance for defined contribution plans).

Required Documents and Information Needed Before Filling

To ensure your census and benefit records are accurate, assemble the following materials before preparing Form 8955-SSA:

• Termination and Payroll Logs: Human resources records documenting exact employee termination dates.
• Plan Vesting Ledgers: Official plan accounting records establishing each separated participant’s vested percentage and exact account balance.
• Form 1099-R Distribution Records: Payment ledgers confirming which previously reported workers took full lump-sum distributions or rollovers and need removal under Code C.
• Prior-Year Filings: Copies of previous Form 8955-SSA filings (and historical Schedule SSA filings) to cross-reference participant entry histories.
• Participant Identification: Verified legal names and Social Security numbers matching official government records.

Common Mistakes to Avoid

Errors on Form 8955-SSA cause administrative confusion for retirees decades down the road. Watch out for these frequent mistakes:

• Filing via EFAST2: Attempting to upload Form 8955-SSA to the Department of Labor’s EFAST2 website. EFAST2 will reject the form; it must go through IRS FIRE or physical scannable mail.
• Failing to Remove Paid-Out Participants: Forgetting to submit Code C when a former worker takes a complete cash distribution or rollover. If you do not delete them, the SSA will mistakenly notify the worker at retirement that they still have money in your plan.
• Using Standard Photocopies for Paper Filing: Submitting standard photocopies rather than official IRS scannable forms. IRS scanners cannot process plain paper copies, resulting in returned filings.
• Reporting Non-Vested Workers: Including former employees who left before meeting vesting requirements and forfeited their balances.
• Missing Form 5558 Deadlines: Forgetting to file Form 5558 before the July 31 deadline if an extension is required.

Penalties for Non-Filing or Errors

The federal government enforces strict financial penalties to ensure retirement records are kept up to date. Under the SECURE Act, statutory non-filing penalties were increased significantly:

• Failure-to-File Penalty (IRC Section 6652(d)(1)): The penalty for failing to file Form 8955-SSA is $10 per participant per day the failure continues, up to an annual maximum of $50,000 per plan year.
• Failure to Report Status Changes (IRC Section 6652(d)(2)): Failing to notify the IRS of a change in plan status (such as a change in plan name or administrator) carries a penalty of $10 per day, up to $10,000.
• Failure to Furnish Participant Statements (IRC Section 6057(e)): Plan administrators must provide an individual benefit statement to every separated participant reported on the form. Willful failure to furnish this statement carries a $50 fine per participant.

Related Forms and Schedules

Form 8955-SSA coordinates with several primary retirement plan compliance filings:

• Form 5500 / Form 5500-SF: Annual Return/Report of Employee Benefit Plan (the main annual financial report submitted to the Department of Labor).
• Form 5558: Application for Extension of Time to File Certain Employee Plan Returns (used to request a 2½ month filing extension).
• Form 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
• Schedule SSA: The historical predecessor schedule that was phased out when EFAST2 took effect.

Frequently Asked Questions

Why was Schedule SSA replaced by Form 8955-SSA?

When the Department of Labor transitioned Form 5500 to the public EFAST2 electronic system, privacy laws prevented displaying participant Social Security numbers publicly. The IRS created Form 8955-SSA as a separate, confidential return submitted directly to the IRS.

Can I submit Form 8955-SSA along with my Form 5500?

No. Form 5500 is filed through the Department of Labor’s EFAST2 portal, whereas Form 8955-SSA is filed directly with the IRS via the FIRE system or paper mail. They must be submitted separately.

What must an employer do when a previously reported participant rolls over their account?

The administrator must report that participant using Code C on the Form 8955-SSA for the plan year in which the distribution occurred, alerting the government that the plan no longer holds deferred benefits for that person.

Does the administrator have to notify the separated employee?

Yes. Under Section 6057(e), the plan administrator must furnish an individual written statement to each separated participant reported on Form 8955-SSA detailing the nature and amount of their deferred vested benefit.

How does the Social Security Administration use this information?

The SSA stores the data in its national clearinghouse. When a worker reaches retirement age and applies for Social Security benefits, the agency issues a notice alerting the worker to contact their former employer to claim their pension or 401(k) balance.

Are 401(k) plans with immediate cash-out rules required to file?

If a separated employee’s balance is below the statutory cash-out threshold (e.g., under $5,000 or $7,000) and the plan automatically distributes the money into a default rollover IRA during the year of separation, that worker does not need to be reported on Form 8955-SSA.

Conclusion – Key Takeaways Summarized

IRS Form 8955-SSA is an essential federal safeguard that prevents retirement accounts from becoming permanently lost. By recording separated employees with vested benefits, plan administrators maintain compliance and ensure former workers can locate their retirement assets years later.

To avoid steep Section 6652 penalties, track separated employees carefully, submit Code C deletions when accounts are distributed, file by July 31 (or use Form 5558 for an extension), and submit your form directly to the IRS via the FIRE system or approved scannable forms.