By Ghazanfar Ali 
Form 8955-SSA is an important IRS reporting document used by retirement plan administrators to notify the Social Security Administration (SSA) about plan participants who have separated from service but still have deferred vested benefits. While this form is not filed by individual taxpayers, it plays a vital role in retirement compliance and benefit tracking.
In this comprehensive guide, you’ll learn what Form 8955-SSA is, who must file it, how the filing process works, key IRS regulations, common challenges, and frequently asked questions.
What Is Form 8955-SSA?
Form 8955-SSA (also known as Form 8955 SSA or 8955 SSA form) is an annual information return required by the IRS. It reports participants in retirement plans who are no longer employed but still entitled to future retirement benefits.
The information is shared with the Social Security Administration so that individuals can be notified of their deferred benefits when they apply for Social Security.
What Is Form 8955-SSA Used For?
- Tracks deferred vested benefits
- Helps former employees locate retirement benefits
- Supports IRS and SSA compliance
- Replaces the discontinued Schedule SSA (Form 5500)
Who Must File IRS Form 8955-SSA?
IRS Form 8955-SSA must be filed by administrators of:
- Qualified pension plans
- Defined benefit plans
- Defined contribution plans (e.g., 401(k) plans)
- Governmental plans with deferred vested participants
You must file if:
- A participant separated from service
- The participant is entitled to a future benefit
- The participant has not yet started receiving benefits
Employers, plan sponsors, or third-party administrators are typically responsible for filing.
Who Does NOT Need to File Form 8955-SSA?
You generally do not need to file if:
- All separated participants have already received full distributions
- The plan has no deferred vested participants
- The plan is a one-participant plan (in many cases)
Information Reported on Form 8955-SSA
The 8955 SSA form includes detailed participant and plan data:
- Participant name and Social Security number
- Plan name and employer identification number (EIN)
- Nature of the deferred vested benefit
- Code indicating the type of participant status change
- Plan year being reported
This data ensures accurate tracking of retirement benefits over time.
Form 8955-SSA Instructions: How to File
Understanding Form 8955-SSA instructions is critical for accurate filing.
Step 1: Identify Reportable Participants
Determine which participants:
- Left employment during the plan year
- Have a vested benefit payable in the future
Step 2: Gather Required Information
Collect accurate:
- SSNs
- Benefit status codes
- Plan details
Step 3: Complete the Form
Use the correct codes based on the participant’s status, as outlined in Form 8955-SSA instructions.
Step 4: File Electronically or by Mail
- Electronic filing is encouraged
- Paper filing is allowed for smaller filers
Step 5: Keep Records
Maintain copies for audit and compliance purposes.
Form 8955-SSA Filing Deadline
The standard deadline for Form 8955-SSA is:
- The last day of the seventh month after the plan year ends
Extension Option
- File Form 5558 to receive an automatic extension
- Extensions typically align with Form 5500 deadlines
Penalties for Late or Incorrect Filing
Failure to file IRS Form 8955-SSA correctly can result in penalties:
- $10 per participant per day (up to IRS limits)
- Penalties for incorrect or missing SSNs
- Additional fines for intentional disregard
Timely and accurate filing helps avoid unnecessary compliance risks.
Why Form 8955-SSA Is Important
1. Protects Participant Benefits
Ensures former employees can locate retirement benefits later.
2. Supports IRS and SSA Coordination
Creates a centralized benefit tracking system.
3. Maintains Retirement Plan Compliance
Non-compliance may affect plan qualification status.
4. Reduces Legal and Audit Risks
Accurate reporting prevents regulatory scrutiny.
Common Challenges With Form 8955-SSA
1. Incorrect Participant Data
Outdated SSNs or names can cause SSA mismatches.
2. Misunderstanding Reporting Codes
Improper coding leads to IRS rejections.
3. Missing Separated Participants
Failing to report deferred vested benefits is a common error.
4. Filing Delays
Many administrators miss deadlines due to confusion with Form 5500 timelines.
Industries That Commonly File Form 8955-SSA
- Corporate employers with retirement plans
- Government agencies
- Nonprofit organizations
- Financial institutions
- Pension administrators
- Third-party retirement plan service providers
Any organization offering vested retirement benefits may need to file the 8955 SSA form.
Future Trends in Form 8955-SSA Reporting
1. Increased Electronic Filing
The IRS continues to push digital submission.
2. Stronger Data Validation
Improved SSN matching and error detection.
3. Better Integration With Plan Software
Retirement plan systems increasingly auto-generate filings.
4. Greater Compliance Oversight
Stricter enforcement and automated penalties are expected.
FAQs About Form 8955-SSA
1. What is Form 8955-SSA?
It reports deferred vested retirement benefits for separated employees.
2. Is Form 8955-SSA filed with Form 5500?
No, it is filed separately but often on a similar timeline.
3. Do employees receive a copy of Form 8955-SSA?
No, the form is submitted only to the IRS/SSA.
4. Can Form 8955-SSA be filed electronically?
Yes, electronic filing is encouraged and widely supported.
5. What happens if Form 8955-SSA is not filed?
The IRS may impose penalties and compliance issues.
6. Are terminated employees with full distributions reported?
No, only those with deferred vested benefits are reported.
Conclusion
Form 8955-SSA is a critical IRS reporting requirement that helps protect retirement benefits for separated employees while ensuring compliance for plan administrators. By understanding what Form 8955-SSA is, following proper filing instructions, and meeting deadlines, organizations can avoid penalties and maintain retirement plan integrity.
If you manage retirement plans or handle compliance reporting, staying informed about Form 8955-SSA instructions and filing requirements is essential for long-term regulatory success.