If a plan does not have any reportable participants for a given year, then the plan does not need to file a Form 8955-SSA for that year.
Frequently Asked Questions
Do all terminated employees need to be reported on the Form 8955-SSA?
No. All terminated employees do not need to be reported on the Form 8955-SSA. Only those employees who have a vested account balance or vested accrued benefit in the plan.
What special rules apply in 410(b) testing for union employees?
There are several special rules that apply to union employees when doing coverage testing under IRC 410(b). The most significant of these rules is that if a plan covers only union employees, the plan is deemed to pass coverage testing. See IRC 1.410(b)-2.
Who must be reported on the Form 8955-SSA?
Terminated participants with a vested accrued benefit or vested account balance must be reported on the Form 8955-SSA.
Which employers are required to file a Form 8895-SSA?
Private employers who sponsor any type of qualified retirement plan such as a 401(k) plan, profit sharing plan, defined benefit plan or cash balance plan must file a Form 8895-SSA unless the plan is an “owner-only” plan.
Why is the Form 8955-SSA filed separately from the Form 5500?
Effective with the 2009 Form 5500, the Form 5500 is electronically filed and the entire filing is almost immediately available on the DOL website.
What does the SSA do with the Form 8955-SSA?
The Social Security Administration (‘SSA’) uses the information to notify individuals that they may be eligible
Is the TPA financially viable?
Running a non-producing 401(k) TPA is usually considered to be a low-margin business. The average revenue per client tends not to be all that much, and there is a lot of work to be done for that revenue. Many 401(k) TPA owners grew to be owners of TPA firms after years of working on the technical compliance side of the business.
How will you work with my financial advisor?
A 401(k) plan may have three providers: a record-keeper, a financial advisor, and a 401(k) TPA. Generally, each of these providers is independent, and it is usually possible to replace one of the three while keeping the other two.
What is the Form 8955-SSA?
The Form 8955-SSA is a successor to the Schedule SSA where the benefits for terminated employees with a