IRS Releases Draft Instructions for 2020 Form 8955-SSA

November 10, 2020

On October 30, 2020, the IRS published a draft version of the instructions for 2020 Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits. As background, Form 8955-SSA is used to report information about participants who separated from service during the plan year and are entitled to deferred vested benefits under the retirement plan.

The draft instructions clarify that no attachments are permitted to be filed with the form. There is also clarification regarding which Entry Codes should be used 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

This draft of the instructions is only for informational purposes and may not be used for 2020 Form 8955-SSA filings, but employers should familiarize themselves with the instructions in preparation for 2020 plan year filings. While many employers outsource the preparation and filing of this form, employers should also familiarize themselves with the form’s requirements and work closely with outside vendors to collect the applicable information.

Draft Instructions for 2020 Form 8955-SSA »