Form 8955 SSA required for Cash Balance

[jmartin]

Just wanted to verify if SSA is required to be filed for Cash Balance plans. I took over a plan where there are prior year terms with balances. Looking on past 5500's some were not reported on SSA.

[SoCalActuary]

Just wanted to verify if SSA is required to be filed for Cash Balance plans. I took over a plan where there are prior year terms with balances. Looking on past 5500's some were not reported on SSA.

Is this a trick question? Did you suggest that these plans are exempt from ERISA? Or, are you just saying that the old administrator did not behave properly?

[Effen]

How far back did you look? I'm sure you know that no one has filed SSAs since 2008. The new 8955-SSA replaces the old SSA requirements and is first due in January 2012.

[jmartin]

Thanks for the quick replies....the terms I was referring to were prior to 2008. For example one person was terminated in 2006 with a balance but never listed on a 2006, 2007, or 2008 SSA. Thought that was odd.

[Effen]

I would agree that it is "odd" and most likely should have been reported. My experience is that it is a "no harm/no foul". Just report it now and everything should be fine.

That said, I read in a recent Ft. Williams statement that, "the IRS has informally indicated a desire to enforce the statement and collect penalties to help offset the cost of the new electronic Form 8955-SSA filing option". So, although in the past they tended not to bother you, maybe the future won't be so bright. Seems like a strange concept that the IRS creates something, then expects to pay for it by collecting fines for non-compliance. I guess it must be part of the new jobs bill.