Form 8955-SSA

[Guest tmsjc]

I apologize for the basic questions and the lateness of the request. We have a 403(b) and are new to the audit and 5500 processes. We have just been informed by the auditors that we need to file the 8955-SSA. Since we need to gather all of the info for the auditors anyway, we decided to try to tackle the 8955-SSA ourselves.

Please clarify the following:

1. In Part III, line 9 are we to add (code A) only those participants with balances but haven't started to receive benefits? Or are they omitted only if they have been paid out entirely?

2. If those reported have yet to draw anything, how do we report on 9(d) and 9(f)? (Our providers provide many payments options.)

Thank you, everyone, for any advice you can offer!

[Tom Poje]

the whole purpose of the SSA is to drive people crazy...

well, ok, the purpose is to indicate terminated employees who are entitled to a benefit or have an account balance.

the "A" simply means "Active".

so anyone who terminated over a year ago and who has a balance should be coded an "A".

An individual that has been paid out (if they were previously coded an "A") should be coded a "D", telling the govt to "Delete" these peope from the record.

The same would be true if the person starts receiving an annuity or installment payments. They would be coded a "D" as well.

If someone was never coded an "A", you would not code them a "D" if they are paid out.

you only report someone as an "A" once, not year after year.

that perhaps is a real brief overview

[Guest tmsjc]

That was a great overview! Thanks! I whole-heartedly agree with your purpose of the SSA.

So, how do we answer lines 9(d) and (e)? The active participants haven't chosen a payout method yet.

[Tom Poje]

I would code both as "A" and enter the balance in (g)

the normal form is probably lump sum anyway.

whether the person elects a lump sum at payout or an annuity, you would still simply code the person as a "D"

(If the plan was a DB you would code it as an annuity, but the person could still take a lump sum.)