Form 8955 SSA

[DPSRich]

Two questions:

1- If a client was previously filing a full 5500 (had other plan participants), but now the only participant is the owner, therefore filing a 5500-EZ, is still necessary to reverse this participant?

2- Participant reported in 2000, paid out in 2001. Since it was volunatary to reverse the participants back then, is it necessary now to reverse this participant 10 years later? If so, how far back do we go?

Any help or guidance would be greatly appreciated.

Thank you.

DPSRich

[Bird]

When you say "reverse" I assume you mean "report as no longer being entitled to benefits"?

For the owner, I would say no, and report him or her only when applicable.

for the other person, I would do your client and yourself a favor and report him or her. Otherwise SS is going to tell that person they might have benefits coming (maybe 10, 15...or 30 years down the road) and you can avoid the consequences of that reporting (participant hears "I do have more benefits coming") if possible.

[DPSRich]

When you say "reverse" I assume you mean "report as no longer being entitled to benefits"?

For the owner, I would say no, and report him or her only when applicable.

for the other person, I would do your client and yourself a favor and report him or her. Otherwise SS is going to tell that person they might have benefits coming (maybe 10, 15...or 30 years down the road) and you can avoid the consequences of that reporting (participant hears "I do have more benefits coming") if possible.

Thank you for replying.

Yes, I mean't reversal, I wasn't clear. The owner was not the terminated participant back in 2007 when we filed the 5500 and accompanying Schedules I, R, SSA. But we now only have the owner in the Plan and we have been filing a 5500-EZ. Does that change your answer?

Thanks again.

[Bird]

So the participant you are talking about is the one who was paid in 2001 and was not reported? I would definitely report that person now.

[DPSRich]

So the participant you are talking about is the one who was paid in 2001 and was not reported? I would definitely report that person now.

Was reported, just not reversed.

[Bird]

I meant "I would definitely report that person as paid now." (i.e. "I would reverse" in your parlance.)