IRS Issues Erroneous Form 8955-SSA Penalty Notices Approximately 4,000 plan sponsors have recently received notices that erroneously inform them that the IRS is assessing a penalty due to their “filing a late or incomplete” Forms 8955-SSA. ASPPA GAC spoke with a representative of the IRS on Friday, August 16, 2013. The
treated as part of the 403(b) plan but are not subject to Form 5500 reporting. The transfer would be subject to reporting on the Form 5500 but it is not clear where this should be reported on the form. 3. Transfer from a Non-Grandfathered Orphan 403(b) Account to an Approved Vendor.
ASPPA 4245 North Fairfax Drive. Suite 750, Arlington, VA 22203, P 703.516.9300 F 703.516.9308 email: [email protected]
3 2008 Form 5500 Annual Reports, supra at 3. 4 Id. at 49. 5 2008 Form 5500 Annual Reports, supra at 3. 6 Id. at 5 (plans with fewer than 100 participants). 7 Id. at (plans with 100 or more participants). 8 Robert Steyer, Large DC record keepers tighten grip, Pensions & Investments (Apr. 2011), available at
The Form 5500 and Form 5558 are processed through different computer programs. Because the Form 5500 has a lower number, it is processed first. Then, the Form 5558 is processed. If the Form 5500 (which was submitted in early August) is processed before the Form 5558 (which was timely submitted in late July),
in any form other than as an annuity. Administration During Plan Term •Exception: Plan Administrator may provide benefits attributable to employer contributions in a form other than as an annuity if: –The participant terminated employment or is otherwise permitted to receive the distribution; –The distribution is consistent with prior
IRS Form 5500 series and the IRS Form 8955‐SSA. Treasury Regulation §1.6081‐11 had revised the rules to provide an automatic extension of time to file the Form 5500 series using Form 5558 without a signature. However, the current version of the Form 5558, which
IRS requesting the elimination of the signature requirement when IRS Form 5558 is filed to extend the due date for filing Form 8955‐SSA. ASPPA requested that the exception granted under Treasury Regulation §1.6081‐11 for Form 5500 series reports be applied or expanded to include Form 8955‐SSA.
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2. The requirements of the form impact the number of applications the PBGC will receive. PBGC estimates the proposed form is expected to generate 425 requests. ARA believes that the simpler the form, the more requests that would be submitted, while the more complex and onerous the form, the less requests that would be submitted. ARA