IRS Finalizes 2021 Form 8955-SSA Instructions

The IRS recently published the final version of the instructions for the 2021 Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits. Form 8955-SSA is used to report information about retirement plan participants who separated from service with the employer and are entitled to deferred vested benefits.

The instructions assist employers with the preparation of the 2021 Forms 8955-SSA filing. The instructions explain that the IRS does not permit form attachments. They also clarify which entry codes filers should use in Part III, line 9, column (a) for the following participant scenarios:

• Entry Code A: Separated from service covered by the plan, but vested retirement benefits are not paid and were not previously reported.
• Entry Code B: Were previously reported under the plan but whose information is being corrected.
• Entry Code C: Were previously reported as deferred vested participants on another plan's filing if their benefits were transferred (other than in a rollover) to the plan of a new employer during the covered period.
• Entry Code D: Were previously reported under the plan but have been paid out or no longer entitled to those deferred vested benefits.

Although many employers outsource the preparation and filing of Form 8955-SSA, employers should familiarize themselves with the form’s requirements and work closely with service providers to collect the applicable information.

2021 Form 8955-SSA »